July Interest Rate Update: Act now or wait?

July Interest Rate Update: Act now or wait?

At today's meeting, the RBA Board decided to hold the cash rate at 3.85%, deciding not to proceed with the highly expected rate cut for now.

Here is a link to the official release - and here are our take aways.

• Inflation is moderating, with both headline and trimmed mean inflation near the 2–3% target range. However, recent data was slightly stronger than expected, prompting the Board to wait for more confirmation that inflation is on a sustainable path toward 2.5%.
• Economic uncertainty remains high, especially regarding global trade policy and domestic demand recovery. While household incomes and spending are improving, some sectors still face weak demand and pricing pressures.
• Labour market conditions are tight, with low underutilisation but high unit labour costs and persistently weak productivity.
• The Board acknowledged risks in both directions, growth may be slower than expected, but labour market resilience could surprise on the upside.
• The policy stance remains cautious, with a readiness to act if international or domestic developments materially impact inflation or economic activity.
• Notably, the Board's decision was not unanimous: 6 members voted to hold, while 3 were in favour of a cut. An unattributed vote record will now accompany post-meeting statements.

Whether you’re holding property, looking to refinance, or considering your next acquisition (residential or commercial), this raises critical questions… are there cuts coming and do we act now?

Why rate cuts matter

A lower interest rate impacts the market across the board:

• Homeowners and investors may now be able to refinance on better terms, reduce repayments, or restructure their loans for improved cash flow.
• Prospective buyers may gain greater borrowing capacity, making that long-considered property more attainable.
• Commercial property investors could see new viability in purchases that previously didn’t stack up under higher cost of capital.

At the same time, lower rates often boost buyer activity, which may tighten supply and nudge prices upward especially in sought-after markets.

Act now or wait?

With talk of a potential rate cut in August, some are considering whether now is the right time to move. Here are key considerations:

• Refinancing: Acting quickly means locking in current savings. Even if further cuts follow, some lenders offer flexible products or rate review features that allow further adjustments without reapplying.
• Buying: Whether it’s your next home or an addition to your commercial portfolio, entering the market with pre-approval now ensures you're ready if competition intensifies. Waiting might offer marginally better rates short term, but rising demand could offset those gains through higher purchase prices.
• Strategic planning: Now is the time to assess your property finance structure holistically. Understanding what’s possible under current conditions — and what could become possible next month — is key to timing and leverage.

Navigating the Months Ahead

No matter your situation — owner-occupier, investor, or business operator — the months ahead will reward those who are informed, prepared, and strategic.

Some smart next steps:

• Review your current lending — are you getting the best possible terms?
• Reassess upcoming property goals in light of changing affordability.
• Understand what lenders are offering now, and how that may evolve by August.

Whether you're seeking to save on existing finance or capitalise on emerging investment opportunities, the key is to plan now. We don’t just match people with loans, we build real, personalised solutions. We take the time to understand your goals and work closely with your accountant to make sure your finance strategy supports your bigger picture.

Need help understanding your options? It’s not just about getting approved; it’s about getting it right. You’ll always get honest advice from us, clear communication, and a team that genuinely cares.

Contact us for an obligation free chat -

Loren Marsh - Mortgage Specialist
M: 0437 460 035
E: loren.marsh@ledgersmith.com.au

Anthony Rahme - Asset & Commercial Specialist
M: 0434 016 665
E: anthony.rahme@ledgersmith.com.au