RBA cash rate
The RBA cash rate, and what it means for you
Effective from 06/05/2026
The cash rate is the Reserve Bank of Australia’s main lever for monetary policy — the rate it targets for overnight lending between banks. When it moves, the rates you’re paid on savings and term deposits, and charged on a variable home loan, tend to move with it. Here’s what that means in practice.
Inflation vs the RBA’s target
The RBA sets the cash rate to keep inflation in its 2–3% target band, so where inflation sits is the best guide to where rates head next — above the band points to holds or hikes, inside it opens the door to cuts.
3.50%
Trimmed mean · Mar 2026 qtr
2–3%
Target band
Year-ended. The slate needle is the quarterly trimmed mean (the RBA’s preferred underlying measure). Headline CPI is 4.10%. Sources: RBA (quarterly).
If you’re saving
Savings and term-deposit rates broadly follow the cash rate. When cuts look likely, locking a term deposit beforehand preserves today’s rate; when rates are rising, a bonus saver that tracks the market may serve you better. Either way it pays to keep your rate above the pack — that’s what our comparisons are for.
If you have a mortgage
Variable home loan rates broadly track the cash rate, though lenders choose how much of a move to pass on — so a cut doesn’t always reach you in full. If your rate hasn’t kept pace, the refinance calculator shows what switching could save.
Recent cash rate moves
| Effective date | Cash rate | Change |
|---|---|---|
| 06/05/2026 | 4.35% | +0.25% |
| 18/03/2026 | 4.10% | +0.25% |
| 04/02/2026 | 3.85% | +0.25% |
| 13/08/2025 | 3.60% | -0.25% |
| 21/05/2025 | 3.85% | -0.25% |
| 19/02/2025 | 4.10% | -0.25% |
| 08/11/2023 | 4.35% | +0.25% |
| 07/06/2023 | 4.10% | +0.25% |
Frequently Asked Questions
What is the RBA cash rate?
The cash rate is the interest rate the Reserve Bank of Australia targets for overnight loans between banks. It's the RBA's main monetary-policy lever: moving it ripples through to the rates banks charge on home loans and pay on savings and term deposits.
How does the cash rate affect my savings?
When the cash rate rises, banks tend to lift savings and term-deposit rates (though not always fully or immediately); when it falls, deposit rates usually follow down. Bonus-saver and term-deposit rates move most closely with it. If a cut is expected, locking a term deposit beforehand can preserve today's rate.
How does the cash rate affect my mortgage?
Variable home loan rates broadly track the cash rate, so a cut usually lowers repayments and a rise increases them — lenders decide how much of any move to pass on. Fixed rates are set at the time you fix and don't change with the cash rate until you re-fix or revert to variable.
When does the RBA decide the cash rate?
The RBA Board meets several times a year to decide whether to move the cash rate, publishing the decision the same afternoon. Check the RBA's schedule for the next meeting date.
Make the rate work for you
Whichever way the cash rate moves, the gap between a leading rate and a lazy one is bigger. Compare and switch in a few minutes.
The cash rate shown is the RBA’s target rate; confirm the latest figure and meeting schedule at rba.gov.au. General information only — not financial advice.