RBA interest rate decision – July 2025
- Tori Browne
- Jul 8
- 3 min read
Updated: Jul 8
RBA holds the cash rate steady at 3.60%. What this means for your mortgage and how to plan ahead.
Published: 8 July 2025
The Reserve Bank of Australia (RBA) has today decided to hold the official cash rate at 3.60%, maintaining its current position after two consecutive cuts earlier this year.
This pause in monetary policy signals a more measured approach from the central bank as inflation continues to ease, but economic uncertainty still lingers. While many borrowers had hoped for further relief, the RBA believes the current rate is already supportive enough to manage growth and inflation targets.
Why the RBA is pausing on further rate cuts
The decision to hold follows early signs of economic stabilisation. In its official statement, the RBA noted:
“Inflation continues to moderate, and is now within the 2–3 per cent target range. Monetary policy is working to support demand while anchoring inflation expectations.”
Key economic factors influencing the decision include:
A steady drop in headline inflation, currently tracking around 2.1%
A cooling property market with slowed growth across major cities
Weak consumer spending and business investment
Global uncertainty, including trade and geopolitical risks
With inflation now within target, the RBA is watching closely to see how the economy reacts to previous rate cuts before making further moves.
What this means for your mortgage
If you’re on a variable home loan, your current interest rate will remain unchanged, but this is still a critical time to review your loan.
📌 Many lenders have not passed on full rate cuts from earlier this year or may be slower to act if future changes occur.
📌 If your rate still starts with a “5” or higher, you’re probably overpaying.
📌 Lenders are competing harder than ever, and borrowers with solid repayment history or equity may qualify for sharper rates.
When will the next rate move happen?
The RBA has not ruled out further changes later in the year but is clearly signalling a period of observation and caution.
Economists are now split:
Some forecast another cut before the end of 2025 if economic softness continues
Others believe the current rate may hold for several months while inflation and growth stabilise
What this means for borrowers: ▶ You should take this opportunity to get your loan in order now, before any further changes impact the market or property prices rebound.
Top strategies for homeowners during a rate hold
Even if the cash rate hasn’t moved, your mortgage strategy still should. Here are some smart moves to make now:
✅ Check your current rate – Compare it against market offerings. New customers often get better deals than loyal ones.
✅ Ask your bank for a reprice – You don’t need to refinance to get a better rate. A phone call might do the trick.
✅ Consider refinancing – Especially if your lender didn’t pass on previous cuts.
✅ Maintain higher repayments – If rates fell earlier but you didn’t reduce repayments, you’re already paying off your loan faster.
✅ Use your offset account strategically – Every dollar saved can reduce interest owed.
✅ Book a review with a broker – A fresh look at your structure, terms, and features can unlock better flexibility and savings.
How Fync can help you navigate interest rate changes:
At Fync, we help Australian homeowners and investors make confident mortgage decisions, whether rates go up, down or stay flat.
We offer personalised reviews to:
Identify hidden savings in your current loan
Negotiate better deals on your behalf
Help you refinance or restructure with confidence
Ensure your loan aligns with your long-term goals
Contact the Fync team today for a complimentary loan review.
Visit the Fync website today to learn more and take control of your financial future.
*Disclaimer: Please note that the information provided in this communication is for general informational purposes only and should not be construed as professional advice. It is not intended to substitute for personalised financial, legal, or tax advice. Please consult a qualified professional before making any decisions based on the information provided.
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