Understanding the Reserve Bank’s Latest Cash Rate Hold

Reserve Bank Holds Cash Rate at 3.60% Amid Inflation Uncertainty

The Reserve Bank of Australia has decided to keep the cash rate steady at 3.60 percent as of 30 September 2025. This decision reflects a cautious approach amid inflation that, while moderated, remains somewhat sticky, particularly in service sectors.

Inflation refers to the general increase in prices and fall in the purchasing value of money. The Reserve Bank’s goal is to maintain inflation within a 2–3 percent target band to support economic stability.

Recent data shows inflation pressures are more persistent than previously expected, with market services inflation running hotter than anticipated. This means costs in sectors like hospitality and healthcare may rise more than initially forecast.

The Board is awaiting the full third-quarter inflation data before making further adjustments. This data-dependent stance means future rate decisions will consider incoming information on inflation, wages, and the labour market.

It’s important to note that holding the cash rate steady doesn’t guarantee mortgage rates won’t change, as lenders set their own rates based on various factors. Additionally, changes in rates can affect borrowing costs and your home loan repayments.

As a mortgage broker, I can help you understand how these economic updates might impact your borrowing power and loan options. We can review your current situation and plan for potential changes ahead.

Contact me today to discuss your mortgage strategy and make informed decisions in this evolving market.