Latest RBA Interest Rate Announcement and History
Tuesday 4th November 2025
At its meeting today, the Board decided to leave the cash rate unchanged at 3.60 per cent.
Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and potential supply closer towards balance.
The Board’s judgement is that some of the increase in underlying inflation in the September quarter was due to temporary factors.
Uncertainty in the global economy remains elevated but so far there has been minimal impact on overall growth and trade, and many forecasters have revised up their near-term expectations for world growth.
The Board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. The Board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome.
To view the full statement of Michele Bullock, Governor of the Reserve Bank, please click here.
Why do RBA interest rate decisions matter?
RBA interest rate decisions are the key tool for the RBA to influence the Australian economy. They matter for a number of reasons, and affect people of all ages and circumstances:
Deposit holders (including individuals and businesses) will experience this directly through the interest rates offered by banks. To some extent, this also applies to the cash and defensive assets within super and other accounts.
Borrowers (again, including individuals and businesses) feel the effects through the interest and principal repayments on variable rate loans (and indeed on new fixed rate loans).
Lower interest rates tend to stimulate the economy, by improving cashflow for individuals and businesses with debt, as well as encouraging investment spending and employment. Conversely, higher rates restrict household & corporate budgets and spending, putting the brakes on the economy.
Expectations of economic performance, along with other mechanisms for pricing financial markets, tend to provide a positive environment for growth investments like shares and property, which feature heavily in more investors portfolios including super.