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RBA Cash Rate

RBA Cash Rate

Next RBA Meeting: 10th December 2024

Stay up to date with the RBA cash rate and how it's impacting current interestrates across Home Loans, Savings Accounts and Term Deposits to make sure you are getting a competitve deal.

Cash rate held at

4.35%

On Tuesday 5 November 2024

The RBA last increased rates by 25 basis points in November 2023. The national cash rate is now 4.35%.

At the time, RateCity research director Sally Tindall said: "The average borrower has seen a 49 per cent increase to their monthly repayments - but they don't have to cop it on the chin. Don't wait. Do your research and act now, because the sooner you refinance, the more money you're likely to save."

Stay tuned to bank rate changes as they happens - and stay up to date with the latest RBA news by signing up to RateCity’s Rate Tracker email alerts, so you can be the first to know if your bank has changed its mortgage rates.

RateCity Rate Tracker

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No time to check the website? Stay up to date with the latest RBA news by signing up to RateCity’s Rate Tracker email alerts, so you can be the first to know if your bank has changed their mortgage rates. Notify me when rates change.

Savings Account Rate Changes

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Rate Alert

Get notified if your lender passes on rate changes.

What if the cash rate changes?

Loan details

Remaining Loan Amount

Remaining Loan Term

Current Interest Rate

Size of rate change

Repayment Frequency

Repayment with the new cash rate

New Interest Rate

7.85%

New Repayment amount

$ 2895

Monthly addition of

$ 865

The result provided is an estimate only. Please read our Calculator Assumptions and Disclaimer for more information.

Interest rate change calculator

If cash rate increases

If you have a variable rate, your lender will probably raise your home loan interest rate (although it is allowed to act independently of the Reserve Bank).

If you have a fixed rate, your home loan interest rate will remain unchanged for the rest of your fixed-rate term.

If the cash rate holds

If you have a variable rate, your lender will probably leave your home loan interest rate unchanged (although it is allowed to act independently of the Reserve Bank).

If you have a fixed rate, your home loan interest rate will remain unchanged for the rest of your fixed-rate term.

If the cash rate decreases

If you have a variable rate, your lender will probably lower your home loan interest rate (although it is allowed to act independently of the Reserve Bank).

If you have a fixed rate, your home loan interest rate will remain unchanged for the rest of your fixed-rate term.

What is the RBA cash rate?

The cash rate is the interest rate the Reserve Bank of Australia (RBA) charges banks and other lenders on overnight loans. The RBA cash rate affects the interest rate banks charge their customers, as well as the rates of interest paid on savings accounts and term deposits.

Eleven times a year, the Reserve Bank of Australia (RBA) meets to decide whether the cash rate should go up, down or remain the same – a decision which affects millions of Australians. The Reserve Bank decides what the national cash rate will be on the first Tuesday of every month, with the exception of January.

How does the RBA cash rate affect financial products?

Changes to the national cash rate often lead to changes in interest rates from banks and other financial institutions. A rising cash rate often leads to increasing interest rates, and cuts to the cash rate can see interest rates fall.

Lower interest rates can be welcome news to borrowers with credit products, such as home loans, personal loans and car loans. Falling variable interest rates can mean cheaper loan repayments, easing pressure on household budgets, or giving borrowers an opportunity to pay off loans sooner. On the other hand, a rising cash rate can see variable interest rates increase for these loans, potentially leading to financial stress.

Credit card interest rates aren’t typically affected by changes to the RBA cash rate. This is partially because credit cards are effectively unsecured loans, with higher interest rates required to help cover their higher risk.

Changes to the RBA cash rate can also affect savings products, such as savings accounts and term deposits. If the interest rates rise along with the cash rate, account holders may be able to earn more interest from their savings, growing their wealth faster. But if the cash rate falls and interest rates are cut, you may not earn as much interest on your savings.

Keep in mind that while changes to the cash rate can affect interest rates, it’s not the only factor in play. Banks and financial institutions have multiple funding sources, and may choose to raise or lower their interest rates out of cycle from the RBA.

How often does the RBA cash rate change?

Looking back over the last few years, the RBA kept the cash rate on hold at 1.50% between 2016 and 2019, before making several 25-basis point cuts to help stimulate the Australian economy. This included a rare two cuts in March 2020 in response to the COVID-19 pandemic and recession, and a partial cut of 15 basis points to a record low of 0.10% in November 2020.

Starting in May 2022, the RBA began hiking the cash rate rapidly in response to high inflation. This included four back-to back 50-point hikes between June and September 2022, with 25-point hikes in the other months. The RBA has only kept the cash rate on hold in April and July 2023.

Before the most recent hiking cycle, the last time the RBA increased the cash rate was in November 2010, when the cash rate rose by 25 basis points to 4.75%.

When do banks pass on RBA cash rate changes?

Once the RBA has announced the cash rate is moving, lenders will decide whether they intend to pass this change on to their customers. Some banks may make this decision immediately, while others can take days, or even weeks to make an announcement.

One of the easiest ways to keep track of what each lender is doing is by following RateCity on Facebook, Twitter or on this page. RateCity’s RBA Cash Rate Tracker can help you find out when the RBA has changed rates and how it will affect you, including a comprehensive list of which lenders have moved their home loan interest rates following a change to the cash rate. You can also find out which lenders are offering the most competitive interest rates on the market, learn how to refinance your home loan and keep up-to-date of the latest RBA news.

So don’t sit around waiting for an email or a letter from your bank letting you know they’ve moved – our Rate Tracker page is updated as new rates are announced.

Frequently Asked Questions

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What is the RBA cash rate?

How does the RBA cash rate affect financial products?

How often does the RBA cash rate change?

Before the most recent hiking cycle, the last time the RBA increased the cash rate was in November 2010, when the cash rate rose by 25 basis points to 4.75%.

When do banks pass on RBA cash rate changes?

So don’t sit around waiting for an email or a letter from your bank letting you know they’ve moved – our Rate Tracker page is updated as new rates are announced.

RBA Cash Rate

4.35%

RateCity Rate Tracker

Savings Account Rate Changes

Rate Alert

What if the cash rate changes?

Loan details

Repayment with the new cash rate

Interest rate change calculator

If cash rate increases

If the cash rate holds

If the cash rate decreases

On this page

What is the RBA cash rate?

How does the RBA cash rate affect financial products?

How often does the RBA cash rate change?

When do banks pass on RBA cash rate changes?

Frequently Asked Questions

Who sets mortgage rates?

How often do mortgage rates change?

How much of the RBA rate cut do lenders pass on to borrowers?

Share this page

Promoted Home Loan Products

Switch your home loan and save!

On this page

What is the RBA cash rate?

How does the RBA cash rate affect financial products?

How often does the RBA cash rate change?

When do banks pass on RBA cash rate changes?

Frequently Asked Questions

Who sets mortgage rates?

How often do mortgage rates change?

How much of the RBA rate cut do lenders pass on to borrowers?

Share this page

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