In short:
The RBA has kept the cash rate unchanged at 4.35 per cent after three increases in 2026. Wyndham mortgage holders avoid another immediate repayment increase, but the RBA says further rate rises remain possible.
Cost-of-Living Relief Announced
The Reserve Bank of Australia has left interest rates on hold at 4.35 per cent, giving Wyndham mortgage holders and businesses a reprieve from another increase after three rate rises this year.
The RBA Board unanimously decided to keep the cash rate unchanged on 11 August, saying tighter financial conditions are beginning to slow the economy as expected.
The pause follows three cash rate increases since the beginning of 2026, which have increased borrowing costs for households and businesses.
For Wyndham homeowners with variable-rate mortgages, the decision means there is no new RBA-driven increase to repayments this month.
However, repayments remain higher following this year’s rate rises, continuing to squeeze household budgets and discretionary spending.
The Pinch Still Being Felt
That pressure also flows through to local businesses, particularly those reliant on household spending.
The RBA says consumer spending growth is gradually slowing, while businesses facing higher costs are increasingly passing them on through higher prices.
The housing market is also showing signs of slowing, with prices falling in some capital cities and new housing loans declining noticeably.
Despite keeping rates unchanged, the RBA has made clear another increase remains possible.
Inflation remains too high, while global oil and commodity prices remain elevated amid disruption associated with the Middle East conflict.
Inflation, Fuel Prices Remain High
Higher fuel costs are also beginning to flow through to the prices of other goods and services.
The RBA does not expect inflation to return to around the midpoint of its target range until late 2027 and says there are risks it could remain higher for longer.
“The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise.”
For Wyndham households and businesses, the August decision avoids another immediate increase in borrowing costs, but interest rates remain high and the prospect of another rise has not disappeared.
