August Rate Report: Cash Rate stays at 4.35%.

The Reserve Bank has chosen to keep the cash rate on hold at 4.35% after their last monetary policy meeting. [1]

Australian inflation eased in June to 3.8%, a key indicator that the cash rate’s successfully bringing inflation down, though not within the RBA’s preferred range of 2-3% to consider a cash rate cut. You can learn more about the relationship between inflation and interest rates here.

If You Have a Home Loan…

A cash rate hold means repayments on variable rate home loans will likely stay put for now. However, it’s worth remembering that just because the RBA doesn’t increase the cash rate doesn’t mean that your lender won’t.

While typically influenced by the actions of the RBA, lenders can change fixed rates, policy, and impact borrowing power at any time.

A rate hold is a good opportunity to review your current rate and ensure that it still serves you. Your local MoneyQuest mortgage broker and finance specialist can provide a home loan health check at zero cost to ensure you aren’t paying too much, or on a loan that no longer suits your long-term needs.

We can help you refinance to a more competitive rate, or switch to a more suitable lender, potentially saving you thousands. Reach out to us today.

If You’re Looking to Buy…

A cash rate hold means that interest rates will mostly stay put, and the amount you can borrow for a home loan will likely be unaffected by interest rates.

Additionally, with national home values starting to dip, your borrowing power may actually go further, providing home buyers with more choice when it comes to properties within their budget. If you’re looking to buy, it could be worth discussing with your local MoneyQuest mortgage broker and finance

What’s Next? 

The RBA’s next decision is on September 29th, and it could go either way; We could see another rate increase, or a hold. A cut is always possible, but at this point nearly certainly off the table.

If inflation continues its downward trajectory, it’s more likely for the RBA to keep the cash rate steady; there’s still uncertainty about where the economy is headed. However, some experts believe the cash rate is as likely to increase this year as it is to stay steady [2].

Regardless, a rate pause is good reason to move on your finance goals and see what’s possible. We can help you calculate borrowing power and develop a home buying strategy that works for you or ensure that your current home loan still suits your needs. Reach out to your local MoneyQuest broker for a zero-cost chat and find out what’s possible.

[1] RBA (2026). Statement by the Monetary Policy Board: Monetary Policy Decision | Media Releases. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/media-releases/2026/.html.

[2] Lefort, C. (2026). More RBA interest rate increases are on the way this year, warn economists. [online] Australian Financial Review. Available at: https://www.afr.com/markets/debt-markets/not-out-of-the-woods-yet-these-economists-warn-rate-rises-are-coming-20260730-p60jvz [Accessed 11 Aug. 2026].

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