The RBA cash rate, and what it means for your loan
The cash rate is the Reserve Bank's policy rate. It is not the rate you pay, and lenders do not always pass a change through in full or straight away. This page tracks where it sits and explains what a move actually does to a repayment.
Where to find the current rate
The Reserve Bank publishes the cash rate target and its meeting schedule on its own site, updated the moment a decision is made. That is the authoritative source, so this page sends you there rather than keeping a second copy that could fall behind it.
What the number means for your own loan depends on your balance and remaining term, not on the rate alone. The repayments calculator gives you your figure rather than an average.
What the cash rate actually is
The cash rate is the interest rate the Reserve Bank targets for overnight lending between banks. It influences what banks pay to fund themselves, which in turn influences what they charge borrowers. It is a lever, not a price list. Your rate is set by your lender, on your loan, against their own funding costs and competitive position.
Why your rate does not move by the same amount
Lenders decide individually whether to pass a change on, how much of it, and from what date. A cut is not always passed through in full, and the timing usually lags the decision by a few weeks. Existing borrowers and new borrowers are frequently treated differently, which is one of the reasons a loan that was competitive when it settled often is not two years later.
What a change does to a repayment
The effect depends on your balance and remaining term, not on the size of the move alone. The same change in percentage terms costs far more on a large balance with twenty five years left than on a small one nearly paid off. Rather than reproduce a table that would go stale, put your own balance and rate into the repayments calculator and change the rate figure. That gives you your number instead of an average.
Recent decisions
The Reserve Bank keeps the full record of past decisions, with the date and the resulting rate for every meeting. Rather than maintain a second copy here that could drift out of step with it, this page points at the original: the RBA cash rate table is the authority, and it is always current.
What to do when the rate moves
If it rises, check what your repayment becomes before it lands, and check whether your current rate is still competitive rather than assuming it is. If it falls, ask your lender to pass it on; that request costs nothing and is more often successful than people expect. Either way the useful question is not what the RBA did, it is what your lender is now charging you compared with what you could get.
Cash rate questions
Will my repayment change straight away?
Not usually. Lenders set their own effective date, commonly a few weeks after a decision, and they notify you separately. If you are on a fixed rate, nothing changes until the fixed period ends.
Does a cut always get passed on in full?
No. Each lender decides how much of a change to pass through and when. Partial pass-through is common, and the treatment of existing borrowers often differs from the rates advertised to new ones.
Should I fix my rate before the next decision?
Fixing is a decision about how much certainty you want, not a bet on where rates go. Nobody can tell you reliably what the next decision will be, and fixed rates already reflect the market's expectation. The fixed versus variable guide sets out what fixing actually commits you to.
Does the cash rate affect how much I can borrow?
Indirectly, yes. Lenders assess your ability to repay at a rate above the one you would actually pay, so when rates move the assessment moves with them. That is why borrowing capacity can change without your income changing at all.
How often does the RBA meet?
The Reserve Bank publishes its meeting schedule in advance on its own website, and the next scheduled date is shown at the top of this page. The RBA's schedule is the authority.
Work out what it means for you
General information only, and not a forecast. Figures on this page are maintained manually and may lag a decision; the Reserve Bank of Australia is the authority on the cash rate and its meeting schedule.