RBA Holds their Horses on Cash Rate Decision – November Rate Report
Today saw the race stop a nation and rate cuts stopped by inflation, at least for now. [1]
Despite some promising signs pointing to a potential rate cut, The RBA has decided to keep the cash rate on hold at 3.60%, to the dismay of homeowners and home buyers.
A 0.2% increase in unemployment caused some conversation about a potential cash rate cut. However, a rise in inflation dashed those hopes earlier this week, With a spike taking inflation up to 3.2%, which is outside the RBA’s preferred range of 2-3%[2]
The Relationship Between Inflation and Interest Rates
High inflation typically incurs higher interest rates. When inflation is high, interest is typically raised to meet and reduce it. A spike in inflation was a key indicator that the RBA may hold leading into today’s decision, with a rate hold likely a measure to hopefully bring inflation down below 3% again.
How this Affects Home Owners
Rates are more than likely staying put, which means that if you’re on a variable rate, don’t expect another reduction on your monthly mortgage repayments just yet. Additionally, many economists expect the rate cut cycle is ending, with less of an impact than we may have hoped.
If you’re struggling to meet mortgage repayments, it’s important to discuss with you local MoneyQuest broker sooner rather than later. We can help you structure a repayment plan, and if necessary, explore repricing and refinancing options to help you maintain your mortgage repayments. We’re here to help.
How this Affects Home Buyers
For home buyers, borrowing power will remain unchanged, and you’ll probably not see any new loan options with a lowering of interest rates.
It’s worth remembering that your home loan is a long term commitment, so you want to ensure it’s something you can afford, even if rates stay high, or even increase. If you’re looking to buy, it’s best to speak with your broker to explore options you can reasonably afford, and ensure you give yourself enough of a buffer for a turn in market conditions.
What’s Next?
With cash rate cuts becoming less frequent, following our first cut in February of this year, it looks like the cash rate may be settling in at 3.6% until 2026. However, there is still a cash rate decision next month, so the holidays may gift us one more cash rate relief. With three cuts this year, the cash rate has reached a two and a half year low.[3], which has hopefully provided more choice for home buyers, and relief for home owners.
[1] Monetary Policy Decision, October 2025. RBA. 4/11/25. Viewed 4/11/25
[3] Lowe, P. Monetary Policy Decision, April 2023. RBA. 4/4/23. Viewed 4/11/25
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