RBA holds the line in April rate announcement

Today, the Reserve Bank of Australia (RBA) decided to hold the cash rate steady at 4.10% pa. ​The RBA last cut the official cash rate on 18 February 2025, reducing it by 25 basis points.

While Australians are hopeful for another cut this year, it was not going to be today, says Chris Weston, Head of Research at Pepperstone, “The RBA is likely waiting for the Q1 CPI data, due out on 30 April, before making any move on interest rates. Early signs from February suggest inflation is easing. If the next data shows core inflation falling from 3.2% to around 2.8% annually, it would strengthen the case for a rate cut in May. A weaker jobs report or softer wage growth in the meantime would add further weight to that decision, making a cut even more likely.”

What the experts think

Shane Petros, Director at Australian Finance Hub, weighs in, “The Reserve Bank of Australia’s decision to leave interest rates unchanged reflects their cautious approach in the current economic environment. With underlying inflation at 2.7% for the quarter, the RBA appears to be maintaining a careful balance between supporting economic growth and managing inflationary pressures. However, given this inflationary trend, we could see a potential rate cut in the upcoming May RBA decision. This provides an opportunity for homeowners and prospective buyers to plan ahead and stay informed about future rate movements.”

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For Home Buyers

If you’re shopping for a home loan or already pre-approved, your borrowing power stays roughly the same. The good news? You’re not facing higher repayments, which gives a bit of certainty in planning your next step. Many buyers are still sitting tight, waiting to see what the RBA will do later this year. That could mean less competition at open homes, especially in the cooler months.

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For Sellers

For sellers, this decision helps keep buyer confidence steady. While a rate cut might’ve brought more urgency to the market, a hold means conditions remain stable. If your home is well-priced and presented, you’ll still attract interest – especially from first-home buyers and upgraders keeping a close eye on the market.

For Renters

A rate hold won’t immediately affect rents, but it does provide some relief for landlords with mortgages, who were concerned about further hikes. That could mean fewer sharp rent increases in the short term. Renters looking to buy may also see this as a signal that rates have peaked, especially given the market is hinting at future rate cuts as early as May.

What’s next?

While the RBA has held rates this month, it hasn’t ruled out future changes. If inflation continues to ease and the economy slows, rate cuts may be on the table later in 2025. For now, it’s a wait-and-see environment – but one with a bit more stability than last year.