Cash Rate Tracker
The RBA cash rate, in plain English for borrowers.
Where the rate sits today, what the latest decision means for your home loan... and what I would actually do about it.
Current cash rate
0.00%
Held · 11 August 2026
The Reserve Bank board left the cash rate target unchanged at 4.35%... a second consecutive pause after three 25 basis point rises in February, March and May.
- Next decision
- 29 September 2026
- Set by
- Reserve Bank
What just happened
Three rises, then two holds.
After lifting the cash rate by 0.25% at each of its February, March and May meetings, the Reserve Bank held at 4.35% in June and again on 11 August 2026. The August decision was unanimous.
The board said headline inflation is still too high and underlying inflation remains elevated, and that it would consider increasing the cash rate further if upside risks materialise. Since then, July's monthly figures showed headline inflation at 3.5% and trimmed mean inflation at 3.6%... both above the 2 to 3% target band.
On 16 September (US time) the US Federal Reserve raised its own rate by 0.25%. That does not set Australian rates... I explain how a US move actually reaches Australian borrowers here.
For borrowers, a hold means variable rates were broadly left where they were. It does not tell you what comes next. While the rate sits still, it is a reasonable moment to check your current rate still stacks up... which is what a refinance review is for.
What's expected next
The next move is tipped to be up. The timing is not agreed.
Heading into the 29 September meeting, all four major banks expect a 0.25% rise to 4.60%... but they split on when. ASX cash rate futures implied a 78% expectation of a September rise as at the close on 15 September. That disagreement on timing is the honest picture.
Tipping a rise on 29 September
NAB
Expects a 0.25% rise to 4.60% in September, pointing to July inflation running hotter than the RBA expected, and sees a risk of another rise in November.
Tipping a rise in November
CBA · Westpac · ANZ
Expect the same 0.25% rise to 4.60%, but in November, when the board has refreshed forecasts and the full quarter of inflation data.
Forecasts are the published views of each bank's economics team between 27 August and 11 September 2026, and ASX futures pricing as at 15 September 2026. They are general market commentary, not a prediction or recommendation, and they change as new data lands.
Recent decisions
The last few meetings.
- 11 August 2026Held4.35%
- 16 June 2026Held4.35%
- 5 May 2026Raised 0.25%4.35%
- 17 March 2026Raised 0.25%4.10%
- 3 February 2026Raised 0.25%3.85%
Source: RBA cash rate statistics.
What you can actually control
The rate is the RBA's call. Your borrowing power is yours.
You cannot move the cash rate. What you can move is how your income, debts, ownership structure and lender choice are put together... and that is what decides how much you can actually borrow at any rate.
The Borrowing Power Framework walks through the four levers that move the number, in plain English. Complimentary download.
Get the Borrowing Power FrameworkCommon questions
Cash rate questions, answered.
What is the current RBA cash rate?
The RBA cash rate target is 4.35%. The Reserve Bank held it there on 11 August 2026, its second consecutive pause after raising the rate by 0.25% at each of its February, March and May meetings.
When is the next RBA interest rate decision?
The next Reserve Bank board meeting is on 28 to 29 September 2026, with the decision announced at 2:30pm AEST on 29 September. The board meets eight times a year. You can see the full schedule on the RBA website.
Will interest rates go down in 2026?
Nobody can say for certain, and forecasts change with the data. As at mid September 2026, all four major banks' economics teams expect the next move to be up, not down... NAB tips a 0.25% rise to 4.60% on 29 September, while CBA, Westpac and ANZ tip the same rise in November. July's monthly figures showed headline inflation at 3.5% and trimmed mean inflation at 3.6% over the year, both still above the 2 to 3% target band. The board has said it will be attentive to the data, so the path from here is not set.
Does a US Federal Reserve rate rise change Australian mortgage rates?
Not directly. The US Federal Reserve raised its target range by 0.25% to 3.75% to 4.00% on 16 September 2026 (US time), but the Reserve Bank of Australia sets the Australian cash rate itself and lenders set their own home loan rates. A US move can influence the Australian dollar and global bond markets, which the RBA takes into account, but it does not automatically change Australian variable rates.
How does the cash rate affect my mortgage?
The cash rate is the rate the RBA targets for overnight lending between banks. It is not your mortgage rate, but lenders often move variable home loan rates in a similar direction soon after a cash rate change. When the cash rate holds, variable rates usually hold too, though individual lenders set their own rates and timing.
Should I fix my home loan rate or stay variable?
There is no single right answer... it depends on your cash flow, how long you plan to hold the loan, and how much certainty you want. What I would look at for your situation is the gap between fixed and variable pricing on your lender's panel, any offset or redraw you would give up by fixing, and your plans over the next few years. That is a conversation, not a formula.
How does the cash rate affect my borrowing power?
Higher rates reduce borrowing power because lenders assess your repayments at the loan rate plus a serviceability buffer (currently around 3%). When rates hold, that pressure stops building. The lever you control is how your income, debts and structure are presented... which is what the Borrowing Power Framework walks through.