MARKET UPDATE: AUSTRALIAN INTEREST RATES – JULY 2025

The RBA cash rate remains at 3.85%, after surprising markets by not cutting it at the July 7–8 board meeting.
The decision came via a 6–3 majority vote, marking the first time the RBA disclosed individual preferences—six members voted to hold, three supported a 25‑bp cut.
Despite widespread expectations of a 0.25% drop to 3.60%, the board waited for upcoming quarterly CPI data (due end‑July) before deciding on further easing.
Market sentiment now strongly anticipates a rate cut at the next meeting (August 12), with projections bringing the rate down to 3.10–3.35% by early 2026.

What are borrowers seeing?

Average owner‑occupier variable home loan rates are around 6.15% p.a. according to Mozo—translating into potential savings of ≈ A$918/year on a A$500,000 mortgage if rates fall just 0.25%
RBA‑reported lenders’ rates for new owner‑occupier principal‑and‑interest loans sit around 5.76%, while existing outstanding rates average 5.81%
Real borrowers are refinancing now to beat delays—ANZ, Commonwealth Bank, NAB and others have already lowered fixed rates, with some two‑year fixed deals dropping into the low 5% range. Over 13 lenders offer sub‑5% fixed rates in response to this market shift

If your variable rate is over 6%, it’s wise to review your loan now. Book a free Financial Health Check before lenders pass on rate cuts more slowly.

📞 +84 96 275 92 07 📧 support@sw‑globalfinance.com.au