RBA Holds Rates at 4.35%: What Today’s Decision Means for You

Quick answer: The Reserve Bank of Australia (RBA) held the official cash rate at 4.35% on Tuesday 11 August 2026, unanimously. This follows three rate hikes earlier in the year (February, March and May) that lifted the cash rate from 3.60% to 4.35%. It’s not a sign inflation is under control. The Board says inflation is “still too high” and has left the door open to hiking again if needed. Most variable home loan rates won’t move on the back of this decision, though it’s worth checking with your lender, as banks make their own pricing calls.

Why the RBA held today

This wasn’t a hold because inflation is easing. It’s a pause while the Board watches how the economy responds to the three hikes already delivered this year. In its statement, the Board was direct: trimmed mean inflation (its preferred underlying measure) remains elevated and is little changed from the March quarter, and headline inflation is still too high. Oil and related commodity prices remain elevated following the Middle East conflict, and some businesses are passing those costs on through higher prices.

At the same time, the Board noted that financial conditions have tightened following this year’s rate rises, consumer spending growth is slowing gradually as expected, and the labour market has eased a little more than expected. Momentum in the housing market has also shifted, with prices falling in some capital cities and new housing loan volumes declining noticeably.

Put simply: the Board held because the economy is starting to respond to higher rates, but inflation hasn’t fallen far enough yet to declare the job done. Inflation isn’t expected to return to around the middle of the RBA’s target band until late 2027, and the Board flagged upside risks to even that timeline.

Is this the end of rate rises?

Not confirmed either way. The Board was explicit that it “will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise.” So today’s hold is best read as a wait-and-see pause, not an all-clear. Global oil supply and the path of the Middle East conflict remain key swing factors the Board is watching closely.

What this means if you have a home loan

• Variable rate holders: No RBA-driven increase this month, but it’s worth checking your current rate against the market. Lenders adjust pricing independently of the cash rate.
• Fixed rate holders: No immediate impact, but useful timing to start planning for what rate environment you’ll be rolling into when your fixed term ends.
• Buyers and upgraders: With housing momentum shifting and prices softening in some capital cities, this may be a more settled window to plan a move, but borrowing power calculations should still allow for the chance of a further rate rise, not just today’s number.

Should you do anything right now?

Not necessarily, but it’s a good time to check where you actually stand. If you haven’t reviewed your loan structure since the last round of hikes, or you’re weighing up a purchase, refinance, or upgrade, this is a sensible moment to get a clear read on your numbers before deciding what’s next.

If you want a strategy that fits your goals, let’s talk. Book a Free Consultation with one of our brokers.

FAQs

Did the RBA raise interest rates today?

No. On 11 August 2026, the RBA unanimously held the cash rate at 4.35%, unchanged from the previous meeting.

Why did the RBA hold instead of cutting rates?

Inflation is still too high, according to the Board’s own statement. Trimmed mean inflation is little changed from the March quarter, and headline inflation remains above target. The hold reflects tighter financial conditions from three hikes this year, not falling inflation.

Will interest rates go up again in 2026?

The RBA hasn’t ruled it out. The Board says it will raise the cash rate further “if upside risks materialise,” particularly around oil prices and the Middle East conflict. It expects inflation won’t return to around the middle of its target band until late 2027.

Does a rate hold mean my mortgage repayments will go down?

No. A hold means no RBA-driven increase. It doesn’t reduce your existing rate. Repayments only fall if your lender cuts rates or you refinance to a lower one.

When is the next RBA rate decision?

The RBA meets roughly every six weeks. Check rba.gov.au for the next scheduled Monetary Policy Board meeting date.

General information only – this article does not consider your personal circumstances and isn’t personal financial advice. Speak with a licensed mortgage broker before making decisions about your home loan.