The Reserve Bank of Australia (RBA) has decided to keep the cash rate steady at 3.60% in its latest meeting. This cautious decision reflects the RBA’s careful balancing act between controlling inflation and supporting employment. Recent economic data reveals that inflation, measured by the consumer price index (CPI), has risen to 3.2% in the September 2025 quarter, up from 2.1% in June. Meanwhile, the unemployment rate has edged up slightly to 4.5%, signaling a mildly softer labour market than before.
Holding the cash rate steady allows the RBA to observe how these economic conditions develop over the coming months, giving it the flexibility to make further adjustments if needed to maintain overall economic stability. This approach is designed to ensure that inflation does not rise too quickly while also avoiding unnecessary harm to job growth.
For Australians, especially those considering major financial decisions such as buying a home, refinancing an existing loan, or investing in property, today’s RBA announcement is an important signal. Interest rates remaining on hold means borrowing costs are stable for now, but it is a good time to review your financial plans carefully in light of the current economic environment.
The Current Economic Landscape
Inflation rising to 3.2% indicates prices across the economy are increasing faster than in recent quarters. This inflation level is the highest since mid-2024 and suggests rising costs in areas such as housing, recreation, and transport. A bit more inflation can be a sign of a growing economy, but the RBA needs to keep it in check to avoid eroding purchasing power too much.
On the employment front, the slight rise in unemployment to 4.5% shows the labour market is becoming a bit softer. This means there are a few more people looking for work than in previous months. While this hints at some challenges in the job market, it also means there is less pressure for wages and prices to rise rapidly, which might help ease inflationary pressures down the track.
What This Means for You
With interest rates on hold, borrowers and potential homebuyers can feel a bit more certain about the cost of borrowing in the short term. If you are thinking about buying a home, now might be a good time to lock in a mortgage at current rates before any potential changes. For those wanting to refinance, this pause means you can assess whether refinancing could secure better loan terms, reduce repayments, or shorten your loan term.
Investors should also pay attention, as stable rates can influence property prices and rental yields. Keeping informed about economic updates will help you make smarter decisions about timing and strategy in property investment.
Why Choose Philips Group for Your Mortgage Needs?
At Philips Group, we understand that economic conditions like these can be confusing and sometimes overwhelming. Our team of expert mortgage brokers is here to guide you through the process with clear, friendly advice tailored to your unique situation. Whether you’re a first home buyer, upgrading, refinancing, or investing, we provide personalised support to help you find the best loan options available.
We keep a close eye on economic changes, such as RBA decisions and market shifts, so you don’t have to. Our goal is to make the mortgage process simple and stress-free, ensuring you get the best deal suited to your lifestyle and goals.
Stay Informed and Plan Ahead
The RBA’s decision to hold the cash rate steady at 3.60% shows a cautious approach in uncertain times. It’s a reminder of the importance of staying informed and proactive about your finances. Economic factors like inflation and employment rates directly impact borrowing costs and financial planning.
If you have questions about what this means for you or want help to review your mortgage or investment strategy, Philips Group is just a call or message away. Our expert brokers are ready to help you navigate the changing landscape with confidence.
This moment of stability might be the perfect time to reassess your financial goals, explore refinancing possibilities, or start planning for your next property investment. Staying connected with market updates and professional advice will keep you well-positioned no matter what comes next.
For trusted mortgage advice and personalised service, contact Philips Group today. Let us help you make the most informed decisions about your home loan and secure your financial future with confidence.