In short:
The Reserve Bank of Australia has held the cash rate steady at 3.85% today, defying expectations of a cut. Mortgage holders hoping for lower repayments will need to wait, as the RBA takes a cautious approach.
Borrowers miss out on expected $339 monthly saving
The Reserve Bank of Australia has kept the official cash rate on hold at 3.85 per cent, surprising financial markets and leaving borrowers waiting longer for any relief on mortgage repayments.
Today’s decision, announced at 2:30pm AEST, comes despite financial markets pricing in more than a 90 per cent chance of a 0.25 percentage point rate cut. It would have marked the third rate cut this year — but the RBA instead opted for a pause.
Economists had tipped a cut as inflation pressures ease and consumer spending slows, but the central bank has signalled it is not yet ready to shift further into easing mode.
For home loan borrowers, it means no change — for now — to minimum monthly repayments.
Canstar had previously estimated that a 0.25 percentage point cut could have saved the average borrower with a $750,000 loan around $339 per month, reducing repayments from $4,971 to $4,632. But with no change today, repayments remain at current levels.
The RBA board said it would continue to assess incoming economic data, particularly around inflation, employment, and household spending, before making its next move.
While this decision delays potential savings for mortgage holders, it also suggests the RBA remains cautious about moving too quickly amid global economic uncertainty.
