Current RBA cash rate
The current RBA cash rate target is 4.35%. It was last changed on 6 May 2026, an increase of 0.25 percentage points from 4.10%, and was held unchanged at the most recent decision in August 2026.
Last updated: 26 August 2026
Rate summary
- Current cash rate target: 4.35%
- Last changed: 6 May 2026 (from 4.10%)
- Most recent decision: held unchanged in August 2026
- Next RBA interest rate decision: 29 September 2026
- Source: RBA Statistical Table A2 (Monetary Policy Changes)
What the cash rate is
The cash rate is the interest rate banks pay to borrow funds from each other overnight. It is the Reserve Bank of Australia's main monetary-policy lever: the RBA Monetary Policy Board sets a target for it at each scheduled meeting.
Changes in the cash rate flow through to the interest rates lenders charge on home loans. When the RBA raises the cash rate, variable mortgage rates usually rise; when it cuts, they usually fall. Each lender decides how much of a change to pass on and when, and fixed rates are set separately, so your rate may not move by the same amount or at the same time.
The next RBA Monetary Policy Board interest rate decision is scheduled for 29 September 2026.
How the cash rate flows through to home loans
As of June 2026, the average variable rate on outstanding owner-occupier home loans was 6.3%, about 2.0 percentage points above the cash rate.
Indicative repayment impact of a 0.25 percentage point change
A 0.25 percentage point change in your rate works out to roughly:
- $66 a month on a $400,000 loan
- $98 a month on a $600,000 loan
- $131 a month on a $800,000 loan
Illustrations only: a 30-year principal and interest loan at the current average variable rate. These are generic examples, not product rates or personalised calculations. Your actual repayment depends on your rate, balance and term.
Lenders set their own interest rates and the cash rate is only one of the inputs they weigh, so a cash rate change does not automatically move your rate by the same amount. A broker can check how your rate compares and whether refinancing is worthwhile. Find a verified broker.
Frequently asked questions
- What is the current RBA cash rate?
- The current RBA cash rate target is 4.35%. It was last changed on 6 May 2026, an increase of 0.25 percentage points from 4.10%, and was held unchanged at the most recent decision in August 2026.
- When is the next RBA interest rate decision?
- The next RBA Monetary Policy Board interest rate decision is scheduled for 29 September 2026.
- How does the RBA cash rate affect mortgage rates?
- Changes in the cash rate flow through to the interest rates lenders charge on home loans. When the RBA raises the cash rate, variable mortgage rates usually rise; when it cuts, they usually fall. Each lender decides how much of a change to pass on and when, and fixed rates are set separately, so your rate may not move by the same amount or at the same time.
- Does a cash rate change mean my home loan rate changes?
- Not automatically. Lenders set their own rates and decide how much of any RBA change to pass on to variable-rate home loans, and fixed rates are set separately. After a decision, a broker can check whether your current rate is still competitive.
- How does the cash rate affect home loan repayments?
- A change in the cash rate can flow through to variable home loan rates, which changes your monthly repayment. As a generic illustration on a 30-year principal and interest loan at the current average variable rate, a 0.25 percentage point change is about $66 on a $400,000 loan, $98 on a $600,000 loan, and $131 on a $800,000 loan. These are examples only, not product rates or personalised figures; lenders set their own rates, so speak with a broker about your situation.