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Homeowners miss out on a trifecta of cuts as RBA holds rates
The cash rate has been held steady by the Reserve Bank, despite predictions from the nation’s major banks.
08 July 2025
The cash rate has been held steady by the Reserve Bank, despite predictions from the nation’s major banks.
The board of the Reserve Bank of Australia (RBA) has held the cash rate steady at 3.85%, dashing hopes that home loan borrowers may have had of a July rate cut.
After two solid years of cash rate hikes and a lengthy pause throughout 2024, the central bank began cutting rates in February of this year, as inflation began to ease in the economy.
Following another rate cut in May, economists at the nation’s big four banks – ANZ, CommBank, NAB and Westpac – had all predicted that the RBA would cut again in July.
Now, all eyes will be on the bank’s August meeting, to see if they deliver any further rate relief to borrowers who are still feeling the pain from the cost of living crisis and the significant rate hikes of 2022-2023.
Owner occupied
20% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
How can you save on your home loan?
If you were hoping for a July cash rate cut to bring you some mortgage release, then there’s no reason you can’t look around for a better rate.
Figures from the Australian Bureau of Statistics (ABS) showed that almost 100,000 home loans were refinanced in the first three months of 2025, with borrowers looking for better deals, and if you feel you’re paying too much, now could be the time to consider your options.
When rates were low throughout 2022, numerous banks and lenders were offering cashback deals to tempt refinancers, and while there are still a number of these days active today, banks and lenders have switched to offering competitive rates to attract customers.
“It’s essential for borrowers to recognise the power they hold,” said Canstar’s data insights director, Sally Tindall. “Negotiating with lenders, or even switching to a more competitive offer, can translate to substantial savings.”
This article was reviewed by our Finance Editor Jessica Pridmore and Content Editor Alasdair Duncan before it was updated, as part of our fact-checking process.
