RBA holds again in August: what it means if you are waiting for a cut
The Reserve Bank left the cash rate at 4.35% on 11 August 2026, for the second meeting in a row. The vote was unanimous. The Board called policy "somewhat restrictive" but said it remains focused on ensuring that high inflation does not become embedded. That is a pause, not a promise of a cut.
The Board raised the rate in May. Since then it has held twice. People waiting for a cut will have read the August statement closely, so we did too.
Key facts, as at 11 August 2026
- Decision: cash rate target unchanged at 4.35%, unanimous
- Rises in 2026 so far: February, March and May, each 0.25 of a point
- Board's own words: policy is "somewhat restrictive"
- On housing: "Momentum in the housing market has shifted, with housing prices falling in some capital cities and new housing loans declining noticeably."
Source: Reserve Bank of Australia, statement of 11 August 2026
What the Board said
Three sentences carry the message.
"With monetary policy judged to be somewhat restrictive, the Board decided to leave the cash rate target unchanged while it assesses how the economy is evolving."
That explains the hold. The first three rises are still working through.
"The Board remains focused on ensuring that high inflation does not become embedded."
That explains why it did not cut, and why it has not ruled out more.
"Today's policy decision was unanimous."
Compare that with earlier this year, as the table shows.
How the Board's mood changed
| Meeting | Decision | Cash rate after |
|---|---|---|
| 3 February | Raised by 0.25 | 3.85% |
| 17 March | Raised by 0.25, a split vote of five to four | 4.10% |
| 5 May | Raised by 0.25, eight votes to one | 4.35% |
| 16 June | Held, unanimous | 4.35% |
| 11 August | Held, unanimous | 4.35% |
In March the Board was divided down the middle. By May almost everyone agreed on a rise. In June and August everyone agreed to wait.
A united Board is useful information. It means the next move will probably come from the data, not from an argument inside the room.
The housing market is already weaker
The Board's own words are that momentum has shifted and that new housing loans are declining noticeably. Cotality's July figures, published a week earlier, back that up.
| Quarterly change | |
|---|---|
| Sydney | -4% |
| Melbourne | -3.4% |
| Canberra | -2.1% |
| National | -1.9% |
| Brisbane | -0.6% |
| Perth | -0.3% |
| Adelaide | 0.1% |
| Hobart | 1.4% |
| Darwin | 2.4% |
Source: Cotality Home Value Index, results to 31 July 2026, released 3 August 2026
Sydney and Melbourne have fallen the most. Darwin and Hobart are still rising.
What a cut would be worth
Here is the arithmetic on an example $750,000 loan, 30 years, principal and interest, at a rate of 6.25%.
| Move | Monthly repayment | Change |
|---|---|---|
| Today, 6.25% | $4,618 | |
| A 0.25 cut, to 6.00% | $4,497 | $121 less |
| A 0.25 rise, to 6.50% | $4,741 | $123 more |
A single cut would help, but not by much. And nobody can say when.
What we would do
Do not buy on a forecast. If a purchase only works after a cut, it does not work yet.
Check what the bank will lend today. Lenders test you at a rate well above the current one, so a hold is also a steady test.
Keep a buffer. If rates stay at this level for a year or more, you want to know your budget survives it.
For what the first three rises did, see the June pause.
Open the Loan Repayment Calculator
Frequently asked questions
What did the RBA decide on 11 August 2026?
The Board left the cash rate target unchanged at 4.35%. The decision was unanimous. It was the second hold in a row after the rise in May.
Will interest rates be cut soon?
The Board has not said so. It said it is focused on ensuring that high inflation does not become embedded, and that it is leaving the rate unchanged while it assesses how the economy is evolving.
Why did the RBA say policy is somewhat restrictive?
Three rises this year have tightened financial conditions. The Board judged policy to be somewhat restrictive, which is part of why it paused.
How much would a 0.25 point cut save on a $750,000 loan?
About $121 a month on an example 30 year principal and interest loan, moving from 6.25% to 6.00%.
Sources
- Reserve Bank of Australia, Statement by the Monetary Policy Board, 11 August 2026
- Reserve Bank of Australia, statements of 17 March and 5 May 2026
- Cotality Home Value Index, July 2026 results, 3 August 2026
Repayments are our own arithmetic on example rates. This is general information, not financial advice.