RBA Holds Cash Rate at 3.60% – What It Means for You
The Reserve Bank of Australia (RBA) has kept the cash rate on hold at 3.60%, after the latest inflation figures came in higher than expected.
Read the official statement on the RBA’s website.
Key highlights
Cash rate: steady at 3.60%
Headline inflation: 3.0% over the year to August (up from 2.8% in July) – the highest since July 2024
Trimmed mean inflation (RBA’s preferred measure): 2.6% – slightly lower than 2.7% in July
What’s driving the decision?
Inflation is now sitting at the top of the RBA’s 2–3% target band. While headline inflation ticked higher, the trimmed mean result of 2.6% suggests underlying pressures are easing.
Housing costs remain a key contributor to inflation. Property listings across Australia are down around 20% compared to average levels, while buyer demand is strong. This competitive environment is pushing prices higher, especially after the three cash rate cuts earlier this year (totalling 0.75%).
RBA Governor Michele Bullock noted that households may not feel the full impact of these rate cuts until 2026:
“We think of the lags to be 12 to 18 months, but we are seeing early signs it is having an impact in housing credit,” she said.
Property market snapshot – August 2025
What this means for Wollongong & Illawarra buyers
With property listings tight and competition strong, securing finance early is more important than ever. Getting pre-approval gives you certainty around your borrowing power and puts you in a stronger position to negotiate or bid at auction.
Whether you’re a first home buyer in Wollongong, upgrading, or looking for a more competitive home loan in the Illawarra, we can step you through your options.
Get in touch today to book your home loan health check and be ready to act when the right property comes along.