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RBA Holds Cash Rate Steady in July: What It Means for You

Jul 8, 2025 | RBA Announcement

RBA Holds Cash Rate Steady in July: What It Means for You

The Reserve Bank of Australia (RBA) has decided to keep the cash rate unchanged at its July meeting. After months of speculation about possible rate cuts, the central bank has opted for stability—choosing to watch and wait as the economy sends mixed signals.

A Cautious Pause

The RBA noted that while inflation is gradually easing, it is not yet comfortably within the target range. The jobs market remains resilient, but growth is slowing in some sectors. This balancing act has led the Board to hold off on any changes—for now.

What It Means for Mortgage Holders

For borrowers, this means no immediate changes to mortgage repayments. While there’s no relief from lower rates yet, there’s also no added pressure from increases. If you’ve been waiting for a boost in borrowing capacity or lower monthly repayments, the pause means holding steady until further decisions are made later in the year.

The Housing Market Outlook

  • Home Buyers: Affordability pressures aren’t worsening, but the pause also means no additional help from lower rates.

  • Sellers: Without the stimulus of a cut, price growth is expected to remain moderate. Properties may take longer to sell in some areas.

  • Investors: A stable rate environment could encourage careful planning rather than chasing short-term gains.

The Bigger Picture

The RBA’s decision reflects a cautious stance in uncertain times. It provides businesses and households with short-term stability, while keeping options open should the economic outlook shift.

What Should You Do?

Stability is a good time to plan ahead. If it’s been more than a year since your last loan review, this pause could be the perfect opportunity to reassess your strategy. Whether you’re considering refinancing, buying your first home, or investing, having the right plan in place will make sure you’re ready when rates eventually move.

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