RBA Cash Rate Decision Expected to Hold, But Further Increases Loom

The Reserve Bank of Australia (RBA) is widely expected to hold its cash rate at 4.35% when it meets on Tuesday, according to a recent survey of economists.

Nearly all, 92%, of the 38 panellists polled by Finder expect the RBA to leave the rate unchanged, but 44% still forecast at least one further increase before the end of 2026. This is down from 55% who held that view in the prior month's survey.

Finder's expert Richard Whitten warned borrowers against complacency, saying 'interest rates are as high as they've ever been in recent history' and making repayments 'incredibly expensive', especially with higher house prices.

Economists James Morley and Scott Kuru also anticipate a hold but cautioned that a rate rise would compound existing pressures on borrowers. Morley noted the uncertainty of the next direction, while Kuru highlighted the effects of previous interest rate hikes on the economy.