Will Interest Rates Drop in September? – September Rate Report
With spring in full swing, the Reserve Bank of Australia has put a slight dampener on the festivities, opting to keep the cash rate on hold at 3.60% this month. [1]
What Does This Mean for Homeowners?
Today’s decision reflects a market shift in the last month; Inflation, which was seemingly becoming more manageable, reached an annual high in August [2]. In addition, The RBA’s governor, Michelle Bullock, has braced Australians for yet another rise in cost of living, with electricity costs set to surge in 2026 [3].
What Does This Mean for Homebuyers?
Although a rate hold means no immediate boost to borrowing power, tomorrow’s expansion of the First Homebuyer 5% Deposit Scheme is a win for buyers. Broader property price caps give eligible Australians more pathways onto the property ladder.
That said, more market activity could push property prices higher, so if you are considering buying, it may be wise to act sooner rather than later.
Will We See More Cash Rate Cuts?
There are two RBA meetings left this year – in November and December. Some analysts expect a cut before year’s end, but recent trends in inflation have seen some analysts move their prediction for the next rate cut to February 2026, meaning we may very well see the cash rate sit at 3.60% for the remainder of 2025. We could even be in for something of a shock- a cash rate hike!
Your local MoneyQuest broker is here to help you navigate lending opportunities, whether you are purchasing, refinancing, or consolidating debt. Get in touch today to discuss your options.
[1] RBA Monetary Policy Decision – September.
[2] Read, M. ‘Flashing red’: Inflation rise puts more RBA rate cuts in doubt. AFR. First Published Sep 24 2025. Read Sept 30 2025.
[3] Micallef, C. ‘Real progress’: Message RBA boss delivers to every mortgage holder. News.com.au. Read Sept 30 2025.
Disclaimer:
This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).
Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.
Proudly Part Of
The Money Quest Group (MQG) is one of Australia's leading boutique mortgage broking businesses, with a network of more than 600 brokers nationwide. Known for their exuberant culture and superior support, MQG provides brokers access to a range of financial products from more than 60 lending institutions and suppliers, and exclusive access to in-house benefits and services.
© 2017-2025 MoneyQuest Australia Pty Ltd, Australian Credit Licence 487823