RBA holds - cash rate now 4.35%

RBA Holds Cash Rate at 4.35% — August 2026 Update

The Reserve Bank of Australia left the official cash rate unchanged at 4.35% following its meeting on Tuesday 11 August 2026. This marks the second consecutive hold, after three consecutive rate rises earlier in the year lifted the cash rate from 3.60% to 4.35%. Most lenders are not expected to change variable home loan rates as a result of today's decision.

Three of the four major banks — including NAB — now believe the tightening cycle may have peaked, suggesting the next move could be a cut rather than a rise. Westpac remains the outlier, still flagging the possibility of one further increase before the end of 2026. Economists remain divided, with Finder's latest survey finding just over half still expecting at least one more rate rise this year.

For borrowers, today's hold means no immediate change to variable rate repayments. However, with three rises absorbed since February, it may be a good time to check whether your current home loan rate is still competitive — particularly if your existing rate hasn't been reviewed since those earlier increases.

The RBA's next monetary policy decision is scheduled for Tuesday 29 September 2026 at 2:30pm AEST. This article contains general information only and does not constitute financial, legal or tax advice — please consider your individual circumstances or speak with a licensed adviser before acting on it.