What is the RBA Cash Rate?
The RBA cash rate (officially the “cash rate target”) is the interest rate set by the Reserve Bank of Australia on overnight loans between banks. It is the most important interest rate in the Australian economy and directly influences home loan rates, savings account rates, and business lending costs.
When the RBA raises the cash rate, borrowing becomes more expensive and spending typically slows — helping to reduce inflation. When the RBA cuts rates, borrowing becomes cheaper, stimulating economic activity.
RBA Cash Rate History
| Date | Change | Cash Rate | Notes |
|---|---|---|---|
| April 2026 | Hold | 4.10% | Current rate |
| February 2025 | ↓ -0.25% | 4.10% | First cut since 2020 |
| November 2023 | ↑ +0.25% | 4.35% | Peak of tightening cycle |
| June 2023 | ↑ +0.25% | 4.10% | |
| May 2022 | ↑ +0.25% | 0.35% | Start of tightening cycle |
| November 2020 | ↓ -0.15% | 0.10% | Historic low — COVID response |
How Rate Changes Affect Your Mortgage
Each 0.25% change in the RBA cash rate typically changes monthly repayments by approximately $62–$65 per $300,000 of loan balance. The table below shows the impact for common loan sizes:
| Loan Balance | 0.25% cut saves/month | 0.50% cut saves/month |
|---|---|---|
| $400,000 | ~$62 | ~$123 |
| $600,000 | ~$92 | ~$185 |
| $800,000 | ~$123 | ~$247 |
| $1,000,000 | ~$154 | ~$308 |
Based on principal & interest repayments over 30 years. Assumes lenders pass on the full rate change. Use our Rate Rise Impact Calculator for your exact loan.
2026 RBA Meeting Schedule
Frequently Asked Questions
Rate information is updated based on publicly available RBA announcements. This page is for informational purposes only and is not financial advice. Always verify current rates at rba.gov.au.
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