The Reserve Bank of Australia left the cash rate unchanged at 3.60% following its September meeting, in line with expectations after August’s cut and a recent lift in inflation.

RBA Governor Michele Bullock told the House of Representatives Standing Committee on Economics last week that the Board is closely monitoring how the economy responds before considering any further changes. “Forecasts are just that, forecasts. And the economic outlook continues to be clouded by uncertainty,” she said. The message is one of caution, with policy set to balance signs of improving growth against risks both at home and abroad.

What it means for you

For households and businesses, the decision to hold steady has several flow-on effects.

• Borrowers with variable-rate loans: Repayments remain unchanged for now, which gives some relief after earlier movements. However, banks may still adjust their products, so reviewing your rate and features is smart.

• Fixed-rate borrowers: If your fixed term is expiring soon, it’s important to plan ahead. Compare current rates, consider splitting between fixed and variable, and check that repayment amounts fit your budget.

• New buyers and refinancers: A steady cash rate can support confidence, but lenders are still applying strict serviceability buffers. Having a clear picture of your borrowing capacity and preparing documentation early will help smooth the process.

Savers and investors

The pause also carries implications for those with cash savings or investment properties.

• Savings accounts and term deposits: Not all banks adjust deposit rates in step with the RBA, so it pays to shop around. Compare not just the headline rate, but the conditions around access to funds.

• Property investors: Holding costs remain in focus. Reviewing loan structures, assessing rental yields, and considering whether principal and interest repayments or interest-only better suit your cash flow are all important strategies.

The bigger picture

Inflation is still above target, but some signs of easing are emerging. Employment remains resilient, although uneven across industries. Globally, slowing growth and ongoing geopolitical uncertainty are potential headwinds. Against this backdrop, the RBA is unlikely to follow a rigid path, instead responding to the data as it comes in.

Next steps

• Review your current loan structure and interest rate to ensure they still align with your goals.

• Stress test your repayments to prepare for possible future changes.

• Explore options like offset accounts, extra repayments, and loan splits to build financial resilience.

• If you’re planning a purchase, ensure your pre-approval reflects today’s lending environment.

If you’d like to discuss how the cash rate pause might affect your current loan or future borrowing plans, get in touch for a quick review and tailored advice.