The Reserve Bank of Australia (RBA) meets on the first Tuesday of each month (except January) to set the official cash rate. This rate directly influences variable home loan rates, savings account rates, and the broader Australian economy.
Recent RBA Rate Decisions
| Date | Decision | Change | New Rate |
|---|---|---|---|
| February 2025 | Cut | -0.25% | 4.10% |
| November 2024 | Cut | -0.25% | 4.35% |
| Nov 2023 – Oct 2024 | Hold | — | 4.35% |
| November 2023 | Hike | +0.25% | 4.35% |
| June–September 2023 | Hold | — | 4.10% |
| May 2022 – May 2023 | Hiking cycle | +4.00% total | 0.10% → 4.10% |
| November 2020 – April 2022 | Hold | — | 0.10% (historic low) |
How the Cash Rate Affects Your Home Loan
When the RBA changes the cash rate, lenders typically (but not always) pass on the change to variable rate home loans within a few weeks. A 0.25% cut on a $600,000 loan saves approximately $92 per month. Since the two cuts in late 2024 and early 2025, borrowers with $600k in debt have saved ~$184/month.
Forecast — Further Cuts Expected in 2026
Most major bank economists are forecasting 2–3 further 0.25% cuts in 2025-26, which could bring the cash rate to 3.35%–3.60%. This would reduce variable home loan rates from their current ~6% range down toward 5.25%–5.50%.
See Your Repayments at Any Rate
Calculate how much your repayments change with each RBA cut.
Disclaimer: General information only. Not financial advice. Always consult a licensed professional before making financial decisions.