Monthly RBA Cash Rate & Impacts
Christian Stevens, Mortgage Broker
Published January 31, 2025, 2:10 p.m ET
Share:
🔑 Key Facts
- The Reserve Bank of Australia (RBA) sets the official cash rate — the benchmark interest rate influencing mortgage and savings rates nationwide.
- The RBA reviews the rate 11 times per year (first Tuesday of most months).
- Rate changes directly impact home loan repayments, borrowing capacity, and housing sentiment.
- Understanding why the RBA moves rates helps borrowers make informed mortgage decisions.
- Flint provides context, updates and lending guidance with each RBA announcement.
What Is the Cash Rate?
The cash rate is the interest rate the RBA charges banks for overnight lending. It influences:
- Home loan interest rates (variable and fixed)
- Business lending
- Savings account and term deposit returns
When the RBA adjusts the cash rate, lenders usually follow by changing their mortgage and deposit rates.
Why Does the RBA Change the Rate?
The RBA increases or decreases the rate based on economic conditions. Their goals include:
- Controlling inflation (target range 2–3%)
- Supporting employment growth
- Maintaining financial stability
If inflation is too high, rates are often raised to cool spending. If growth is too low, rates may be cut to stimulate borrowing and investment.
What Happens When Rates Rise?
For Borrowers:
- Mortgage repayments increase (especially on variable loans)
- Borrowing power drops due to tougher serviceability calculations
- Refinancing becomes more common to secure better deals
For Savers:
- Savings accounts and term deposit returns may improve
What Happens When Rates Fall?
- Mortgage repayments decrease, freeing up cash flow
- Borrowing power may rise
- Lower returns on savings and term deposits
- Increased buyer demand in the housing market
How It Affects Your Mortgage
Even a 0.25% rate change can add or subtract thousands in interest over a 30-year loan.
Example:
- $600,000 loan
- 0.25% increase = ~$100/month extra in repayments
- Help you refinance, fix, or stay flexible — whatever the market demands
This is why rate announcements matter — and why Flint clients stay informed.
Flint’s Monthly Rate Pulse
Every month, Flint provides a breakdown of:
- The RBA’s latest rate decision
- What it means for your loan, plans or pre-approval
- Strategic responses (e.g. fixing rates, refinancing, offset strategies)
Follow our Monthly Rate Pulse or talk to your broker to stay ahead of the market.
📞 Want to Stay Ahead of Rate Changes?
At Flint, we help:
- Adjust your loan strategy to rate trends
- Review options for fixed vs variable loans
- Support refinancing, repricing and repayments planning
Talk to Flint today and stay in control of your mortgage — no matter which way rates move.
Recommended Articles
Rates & Market Updates
Downsizing with Confidence: Financial Tips for Over-50s
Aug 18, 2025
Rates & Market Updates
Unlocking Financial Potential for Senior Executives: Leverage...
Aug 18, 2025
Rates & Market Updates
The Essential Guide to Deposit Bonds: What Homebuyers and...
Aug 18, 2025
Monthly Newsletter
Subscribe and be the first to know about what’s happening in the market.
Contact Us Today
Learn more about how we can help you achieve your financial goals.
Don’t worry, there’s no commitment. Strategic guidance guaranteed.