On 8 July 2025, the Reserve Bank of Australia chose to keep the official cash rate steady at 3.85 %. The decision surprised some analysts who had tipped another cut following the May reduction. The Board noted that underlying inflation has eased to around 2.7 % and unemployment remains at a low 4.1 %, suggesting the economy is cooling but still resilient.
Why the RBA held the cash rate in July 2025
The RBA’s statement highlighted that trimmed-mean inflation had continued to drift towards its 2–3 % target band, while headline CPI was within range. However, consumer spending was subdued and the housing market remained buoyant. By pausing in July, policymakers signalled a desire to monitor how earlier cuts filter through the economy before committing to further easing.
Review your loan strategy
Even though the cash rate stayed on hold, mortgage holders may still benefit from reviewing their loan structure. In a changing rate environment, refinancin
Get in touch with a Lend A Loan broker
If you would like to learn more about refinancing your home loan or exploring your options, get in touch with a Lend A Loan broker today. Call us on 0488 220 222 or book a free consultation via our booking page: https://www.lendaloan.com.au/book-consultation/