RBA Holds Interest Rate at 3.60%

The Reserve Bank of Australia (RBA) has opted to maintain its cash rate target at 3.60%, with effect from 5 November 2025. 

When the 'race that stops the nation' had every pub in Australia cheering, the RBA announced their decision to maintain interest rates, subtle and deliberate, without anyone to ask the question "Why?".

What Drove the Decision 

Inflation pressure

After a year in which 3 rate cuts were made (in February, May and August), underlying inflation (the RBA’s preferred “trimmed-mean” measure) now looks set to linger at around 3.2% in mid-2026, well above the RBA’s 2-3% target. The RBA described the September quarter inflation jump as “materially higher than expected”.

Economic capacity and labour market

The economy is seen to have less spare capacity than previously thought, meaning inflationary pressures may persist. Although unemployment ticked up, the labour market remains relatively tight, which supports wage and price pressures. 

Housing and demand dynamics

House prices continue to rise and rents are expected to climb in 2026, the RBA flagged both as contributing inflation risks. The RBA signalled that the earlier rate cuts are still working through the economy, meaning the bank wants more time before judging whether further easing is appropriate.

Communications and next steps

The RBA emphasised that it is data-dependent and not on a preset path for cuts. The December board meeting (8-9 December) is the final one for 2025, but many economists now believe a rate cut this year is highly unlikely. 

What It Means for You

For Homeowners and Borrowers

With the RBA holding the cash rate at 3.60%, homeowners now have a period of stability and certainty. After years of rapid rate changes, this consistency gives borrowers a chance to strategise, refinance smartly, and plan ahead with confidence. Those considering their next move, whether upgrading, downsizing or investing, can now make decisions with clearer visibility on where the market is heading.

For Property Markets

The RBA’s decision signals confidence in the economy’s resilience and reinforces that Australia’s property market remains one of the nation’s strongest assets. While the era of “cheap money” may have passed, the environment we’re in now rewards informed buyers, proactive sellers, and strategic investors who move with the right advice.
Demand continues to outpace supply, rents remain firm, and quality homes are still attracting competitive interest, proof that real estate remains a cornerstone of long-term wealth growth.

Why It’s the Time to Act

Periods of stability are when the best opportunities appear. If you’ve been waiting for the “right time” to buy, sell, or invest, this could be it, before the next market shift arrives.

Speak with your local real estate expert today to discuss your position, uncover new opportunities, and make your next move with confidence.