RBA Keeps Cash Rate at 3.85%, Surprising Markets

The Reserve Bank of Australia has chosen to maintain its cash rate at 3.85 percent following the July 7–8 board meeting. This decision came despite widespread expectations that a 25-point cut was imminent.

Governor Michele Bullock emphasized that the board is in a wait‑and‑see mode. While inflation is trending toward the target range, recent data—especially in housing and goods—has shown slight upward variation. The board felt it needed more clarity, particularly from the June‑quarter CPI results, before easing policy.

In a move toward greater transparency, the board revealed a 6–3 split decision. Three members supported a cut, pointing to slowing consumer demand and a softening labour market. The majority voted to hold, citing caution and a preference to confirm sustained inflation reduction.

This Matters to the Property Market

For anyone buying, investing in, or refinancing property, this means mortgage rates are likely to remain relatively stable in the short term. But with inflation moderating, markets are now betting on a rate cut at the next RBA meeting in August, provided CPI data confirms the trend.

This creates a window to prepare. Consider locking in a mortgage now or getting refinancing advice ahead of any change. A future rate cut could improve finance options and spur renewed interest in the housing market.

At All Around Realty, we’re staying alert to these developments. If you’d like personalised advice—whether you’re buying, selling, or managing your mortgage—our team is ready to guide you effectively.

Quick take for our clients:

• RBA held rates at 3.85 percent in July despite expectations of a cut.
• The central bank is awaiting firm CPI data before shifting policy.
• Mortgage rates should remain friction-free for now—but change may come in August.
• Planning ahead could put you in a prime position when rates move.

What Does This Mean for You?

If you’re a homeowner, buyer, or investor, now is the time to review your lending strategy. Interest rates are holding steady, but the market is still unpredictable. Whether you’re planning to buy, sell, or refinance, expert guidance can help you stay ahead of the curve.

For personalised advice and insights tailored to the Moreton Bay region, contact Narelle Cordaro and the team at All Around Realty today.

📞 0466 683 684
📧 [email protected]
🌐 www.allaroundrealty.com.au