RBA Cash Rate — April 2026
The Reserve Bank of Australia's cash rate sits at 4.10% as of April 2026. The RBA cut rates twice in 2025 — in February and May — each by 0.25%, bringing the rate down from a peak of 4.60% reached in November 2023. The 2025 cuts were the first reductions since November 2020 and marked the beginning of the rate-cutting cycle following the inflation-fighting hikes of 2022–2023.
What matters for borrowers isn't the RBA rate itself — it's whether your lender passes on the full cut. Major banks typically pass on RBA cuts to variable rate customers, but not always in full, and not always on time. After every RBA decision, I review which lenders have moved and by how much. If your lender isn't passing on cuts, that's a trigger to refinance.
How RBA Rate Changes Affect Your Repayments
Each 0.25% rate change (one standard cut or hike) changes monthly repayments approximately as follows:
- $500,000 loan: ~$75–$80/month per 0.25% change
- $750,000 loan: ~$115–$120/month per 0.25% change
- $1,000,000 loan: ~$155–$160/month per 0.25% change
- $1,500,000 loan: ~$230–$240/month per 0.25% change
Fixed vs Variable — Who Gets Rate Cuts?
Variable rate borrowers: rate cuts flow through immediately (subject to lender passing them on). Fixed rate borrowers: not affected until the fixed period expires. If you're on a fixed rate and the market has moved significantly below your rate, calculating the break cost and refinancing may make sense — we model this for clients regularly.
2025–2026 Rate Timeline
- November 2023: Peak rate of 4.60% — 13 consecutive hikes since May 2022
- February 2025: First cut — rate moves to 4.35%
- May 2025: Second cut — rate moves to 4.10%
- August 2025 – April 2026: Hold at 4.10%
What to Watch for at Upcoming RBA Meetings
The RBA meets eight times per year. Key factors influencing 2026 decisions: CPI inflation (target band 2–3%), employment data, GDP growth, global economic conditions and the housing market. Market pricing in April 2026 suggests one further cut through 2026 is possible — but the RBA has emphasised data-dependency rather than a predetermined path.
What Rate Cuts Mean for Property
Each rate cut improves borrowing capacity — roughly $10,000–$15,000 more per 0.25% cut on a typical income. Two cuts in 2025 improved Sydney buyer capacity by approximately $20,000–$30,000, contributing to the price growth seen in late 2025 and early 2026. Further cuts would continue this dynamic.