RBA cash rate holds: Here’s how to save anyway

The RBA cut the cash rate at its last meeting in February, so why has it not made the same move today?

The RBA has disappointed borrowers who were expecting a repeat of the February rate cut by keeping the rate on hold.

The national cash rate will remain at 4.10% until at least the next decision in May.

Although the Reserve Bank was very open about not cutting again so soon, hopes were still raised that we'd see a succession of further cuts.

Only 2 of Finder's RBA panel of economists also had hopes that the RBA would cut the rate this month.

If not now, when?

Many of the economists surveyed said the RBA would likely need more time to see the effect of the February rate cut before it risks cutting again.

Anthony Waldron, Mortgage Choice CEO, predicted that the RBA would hold the cash rate. "It takes some time to see cash rate changes reflected in the economy, and the RBA will want to see the impact of the February rate cut flow through before delivering further relief," he said.

Instead, many believe the next rate cut will be at the next decision.

Most expect the next rate cut won't be the last however. 63% of the panel forecast 2 or 3 more cuts in 2025.

What can you do to save money anyway?

Based on the average home loan value and average variable interest rate, the cash rate cut in February would have saved you around $108*.

We're not ungrateful, but that won't necessarily make a huge difference to some people who have been left struggling from all those rate rises a couple of years ago.

So, if you're hanging on waiting for another rate cut to ease the pain, here are some other steps to take:

1. Look at the interest rate your lender is offering to new borrowers. If you've been with your lender for a while, you may notice you're not on their best rate. If that's the case, give them a call and say you'd like to be put on that lower rate.
2. Call your lender anyway... Even if you're on their lowest advertised rate, give them a call and see if they can do any better. If you regularly meet your repayments and you've been with them a while, you might be offered a lower rate.
3. Refinance to a lower rate. A lot of people can't be bothered, but it is often worth it if you can get yourself a much lower rate. Check out our refinancing guide for our latest calculations on how much you could save.
4. Check your repayment schedule. Paying fortnightly can be really helpful in paying your home loan off early, but it's not so good if you're trying to save costs right now. If you're paying fortnightly, give your lender a call and see if they can move you to a monthly schedule.
5. Switch to interest only repayments. This should only be done if you are really, really struggling because it will eventually increase the cost of your repayments and you'll end up paying more over the life of the loan. But if you need a reprieve now, asking your lender to switch to interest only repayments can help.
6. Use your offset account or make additional repayments. This is a solution for people trying to save costs on their overall loan, rather than the immediate costs of repayments. The more you can pay into your offset or loan balance, the less interest you'll pay.

*Calculation is using the ABS average home loan value for all owner occupiers and the RBA's average interest rate for January 2025 minus the 25 basis point cut from February 2025.