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 · 16 June 2026
The Reserve Bank board left the cash rate target unchanged at 4.35%... its first pause after three consecutive 25 basis point rises in February, March and May.
- Next decision
- 11 August 2026
- Set by
- Reserve Bank
What just happened
Three rises, then a pause.
After lifting the cash rate by 0.25% at each of its February, March and May meetings, the Reserve Bank held steady at 4.35% on 16 June 2026. The decision was unanimous, and it was the first pause in this run of rises.
The board's reasoning was that headline and underlying inflation were still running too high... around 4.2% in the most recent reading... even as some pressures, like oil prices, had started to ease. Holding gives the bank time to see whether the earlier rises are doing their work before it moves again.
For borrowers, a hold means variable rates were broadly left where they were. It does not tell you what comes next... only that, for now, the pressure stopped building. A pause can be a good moment to check your current rate is still competitive... which is what a refinance review is for.
What's expected next
The forecasters do not agree... and that is the honest answer.
Heading into the 11 August meeting, the major banks are split. That disagreement is worth more than any single confident prediction... it tells you the path genuinely is not settled.
Tipping a cut in August
CBA · NAB · ANZ
Three of the four majors read the inflation trend as cooling enough for the board to start easing.
Tipping another rise
Westpac
Reads inflation as still too sticky, and expects the board may need to go further in August and September.
Forecasts are general market commentary as at June 2026, not a prediction or recommendation, and they change as new data lands. The board has been clear its decisions depend on the incoming inflation and labour market figures.
Recent decisions
The last few meetings.
- 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. Free to 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 16 June 2026, after raising it 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 10 to 11 August 2026, with the decision announced at 2:30pm AEST on 11 August. 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 June 2026 the major banks are split... Commonwealth Bank, NAB and ANZ expect a cut at the August meeting, while Westpac expects another rise. The board has said its decisions depend on inflation and the labour market, so the path from here is not set.
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.