RBA Cash Rate: Steady or Adjusted?
In July 2025, the Reserve Bank of Australia (RBA) held the official cash rate at 3.85%, maintaining its recent rate-hike pause.
Home Loans
Home loan holders have seen variable rates hover around 5.6% – 6.5%, with fixed-rate offers ranging between 5.0% and 6.1% across 2-, 3-, and 5-year terms.
Variable borrowers are benefiting moderately from the stable cash rate.
Fixed borrowers might see minor rate drops in new deals, though markets remain cautious about further cuts.
Personal Loans
Unsecured personal loan rates generally remain between 6% and 24%, depending on credit profile, loan type and lender. In July:
Credit card rates stayed high, typically above 13.99% – 21.99% , maintaining pressure on revolving balances.
Some lenders eased rates slightly for personal installments—offering relief but still reflecting cautious lending behavior.
Commercial Loans
For businesses, commercial lending rates range between 6.29% and 20% varying based on secured or unsecured, terms and loan conditions.
Larger businesses or secured borrowers with strong relationships are seeing competitive rates near the lower end.
SMEs and unsecured or specialized loans remain closer to the higher band, especially in sectors with elevated risk.
What This Means for Borrowers
Homeowners stand to benefit from stable variable rates or can consider locking in lower fixed rates if planning long-term.
Personal borrowers face the usual high cost of credit curves—but a slight decline in fixed offers may offer relief for some.
Business borrowers should shop around—some banks are eager to win lower-risk clients with better pricing, while others remain conservative.
Looking Ahead
With the RBA holding rates steady this July, there’s anticipation for potential cuts should inflation ease further. That said, global market volatility remains a wildcard, particularly for business borrowers.
Fixed-rate seekers may find value now; variable-rate borrowers should stay alert for any cues in upcoming RBA meetings (August, October).
As always, we are just a call away to discuss the best options to suit your next endeavour.