RBA Rate Decision July 2025: Why the RBA Held Rates and What It Means for Renters and Buyers

On July 8, 2025, the Reserve Bank of Australia (RBA) held the official cash rate steady at 3.85%, defying widespread expectations of a cut. The RBA rate decision in July 2025, passed with a 6–3 vote, the first time such vote details have been disclosed, reflects the central bank’s cautious stance amid easing inflation, a softening economy, and ongoing global uncertainties.

For renters, buyers, and international newcomers, this decision has ripple effects on housing affordability, loan repayments, and the rental market. Here's how it could impact you and what to expect next.

What the July RBA Rate Hold Means

The RBA's decision to maintain the cash rate at 3.85% signals a cautious stance, emphasizing the need for more consistent data before adjusting monetary policy. While inflation has eased into the target range of 2–3%, the central bank seeks confirmation that this trend is sustainable. Governor Michele Bullock stated that the decision was about timing rather than direction, indicating that future rate cuts are still on the table if economic conditions warrant.

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How It Affects Renters and First-Time Tenants

For renters and first-time tenants, the rate hold means continued pressure in the housing market. High mortgage repayments for property owners may lead to increased rents as landlords pass on costs. Additionally, buyer hesitation keeps more people in the rental market longer, tightening competition.

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Should You Wait or Start Applying Now?

Delaying your rental search in anticipation of a rate cut might seem strategic, but it could lead to missed opportunities and higher upfront costs. The longer you wait, the more competitive the market becomes, potentially forcing you into less desirable accommodations.

RBA Rate Decision July 2025: What’s Next?

The RBA's cautious approach suggests that while a rate cut didn't occur in July, future reductions are possible if inflation continues to decline and economic conditions soften. The next RBA meeting is scheduled for August 12, 2025, where updated economic data will inform their decision.

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Visit findmyhomeaus.com or WhatsApp us to get started.