RBA Holds Cash Rate at 4.35% in August 2026

Short summary

The Reserve Bank of Australia left the cash rate target unchanged at 4.35% on 11 August 2026. The decision was unanimous and takes effect from 12 August.

A hold does not automatically change a home loan rate or minimum repayment. Lenders set their own product rates and effective dates. Borrowers should keep using the rate shown on their loan account or lender notice, not the cash rate, when estimating repayments.

Use the Mortgage Repayment Calculator with your balance, actual loan rate and remaining term. The Rate Change Impact Calculator can test a higher or lower lender-rate scenario without treating it as a forecast.

What changed on 11 August

The cash rate did not move:

The RBA said inflation remained too high, while financial conditions had tightened after three cash-rate increases earlier in 2026. It also noted slower consumer spending growth, a shift in housing-market momentum and a noticeable decline in new housing loans.

The Board said monetary policy was somewhat restrictive and left open the possibility of a later increase if inflation risks worsen. That is a statement about possible policy responses, not a forecast that the next move will be up.

What the hold means for a mortgage estimate

The August decision itself adds zero percentage points to the cash rate. It therefore does not create a new repayment increase to model.

This does not mean every mortgage payment stays unchanged. A lender can still:

• apply an earlier pricing decision from a different effective date;
• change a product rate for funding, competition or risk reasons;
• recalculate a minimum repayment after a balance, term or repayment-type change; or
• move a fixed-rate loan to a variable revert rate when the fixed period ends.

Check the home loan rate-change checklist against the lender notice. A calculator result is an estimate, not the contractual repayment amount.

A cumulative 2026 rate scenario

The RBA increased the cash rate by a total of 0.75 percentage points across February, March and May 2026. The following example shows the arithmetic if, purely as a scenario, a lender rate moved by the same total amount.

Assume a $600,000 principal-and-interest loan with 30 years remaining:

The annualised difference is about $3,531. The example holds the loan balance and remaining term constant and excludes fees, offset balances, redraw, repayment timing and lender rounding.

It does not claim that every lender passed on 0.75 percentage points, or that the August hold caused an increase. Use your own old and new product rates in the Rate Change Impact Calculator.

Who may be affected

Variable-rate borrowers

There is no automatic August repayment change to assume. Check the lender account and any recent notices because retail pricing can move independently of the RBA decision.

Fixed-rate borrowers

The hold does not change a fixed contractual rate. The relevant question is the rate and repayment that apply when the fixed period ends. Compare confirmed options with the Loan Comparison Calculator and include switching costs in the Refinance Break-Even Calculator.

Buyers and refinancers

The cash-rate hold is not an approval signal. Lenders assess income, expenses, debts, property security and product-specific policy. Use the Borrowing Power Calculator only as a broad scenario, not a lender assessment.

Property investors

Keep the loan rate separate from rental yield. Test the actual or assumed investment-loan rate in the Investment Property Yield Calculator, along with vacancy and ongoing costs.

What remains uncertain

The RBA did not promise that the cash rate would remain at 4.35%. Its statement said future decisions would respond to incoming data and the evolving balance of risks.

The August meeting minutes are scheduled for 25 August 2026. The next monetary policy decision is scheduled for 2.30 pm AEST on 29 September 2026.

Before then, borrowers still will not know:

• whether their lender will change a retail rate independently;
• what the next RBA decision will be;
• whether a pre-approval or application will be reassessed; or
• how lender policy and household circumstances will affect a credit decision.

Related calculators and guides

• Mortgage Repayment Calculator
• Rate Change Impact Calculator
• Borrowing Power Calculator
• Loan Comparison Calculator
• Refinance Break-Even Calculator
• Cash rate definition
• Home Loan Rate Change Checklist

Sources

• RBA: Monetary Policy Decision, 11 August 2026, including the unanimous 4.35% hold and the Board's stated reasons. Checked 12 August 2026.
• RBA: Cash Rate Target Overview, including the 4.35% target effective 12 August 2026. Checked 12 August 2026.
• RBA: Coming Up, including the August minutes and September decision timetable. Checked 12 August 2026.

General information disclaimer

This article provides general information and indicative calculations only. It is not financial advice, credit advice, a lender quote, a loan offer, an approval or a prediction of future interest rates. Actual rates, repayments, effective dates and lending decisions depend on the loan contract, lender and circumstances. Check the lender's current information before relying on a changed amount.

Last updated: 12 August 2026.