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The RBA cash rate target is currently 4.35% as of 5 May 2026, following three consecutive 0.25% rises in February, March and May 2026. This reversal followed three cuts during 2025 that briefly took the rate down to 3.60%. The average variable mortgage rate for owner-occupiers is app
Rates were cut three times in 2025 but the RBA reversed with three rises in early 2026 (Feb, Mar and May), taking the cash rate to 4.35%. Most economists now expect rates to stay at or near 4.35% through late 2026. Cuts are possible in 2027 if inflation returns to the 2–3% target band, but there are no guarantees.
Not necessarily. Lower rates typically push property prices up as more people can borrow more. The net effect is often a wash - cheaper rates but a more expensive property. If you find the right property now, buying and budgeting at current rates is often better than timing the market.
Variable rate lenders typically pass on rate changes within 1–2 weeks. Lenders are generally faster to raise rates than to cut. Fixed rates move independently based on wholesale market pricing and may not change immediately after an RBA decision.
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