The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.60% at its September meeting. Read the full statement here.
Underlying inflation remains persistently above target. Annual trimmed mean inflation – the RBA’s preferred measure – held at 3.6% in the 12 months to July 2026, unchanged from June and still well above the RBA’s 2-3% target band, according to the Australian Bureau of Statistics.
In a recent interview, RBA Deputy Governor Andrew Hauser was candid about the central bank’s concern, pointing to three key risks pushing inflation higher: the ongoing Middle East conflict, the global AI boom driving up prices and the weaker-than-expected supply capacity of the Australian economy.
For borrowers, the obvious question is: So what does this mean for me?
If you have a variable home or investment loan, there is a good chance your lender will increase your interest rate. That means higher repayments and, after four rate rises this year, those increases are starting to add up.
But here is the part that often gets missed.
Just because the RBA has increased the cash rate does not mean you should simply accept the new rate your current lender might give you. A few lenders have already started to pass on the rate rise to their customers. However there are still lenders negotiating rates. There are still lenders competing for good borrowers. And there can be a surprisingly large difference between what one lender is prepared to offer and versus another.
What is the right question to ask right now?
What can my broker do for me?
And thats where we, at House and Home Loans, step in to help assess your current situation. Are we pricing with your existing lender or looking for 'greener pastures' elsewhere.