RBA makes Melbourne Cup Day 2026 cash rate call

Six members voted to increase the cash rate target while three members voted to leave the cash rate target unchanged at 4.60  per cent.

In a statement, the board stated that inflation remains elevated while the inflation outlook has also been revised materially higher in the updated staff forecasts. It added that the Middle East conflict remains unresolved and "global oil supply disruptions are maintaining upward pressure on global and domestic energy prices and inflation". 

Now is the time to review home loans

In conversation with Accountants Daily, Accounting Home Loans director of sales Cullen Haynes said that today’s cash rate hike to 4.85 per cent was “not the outcome we had hoped for, but it was widely anticipated after September’s inflation figures were higher than expected”.

“Every 25-basis point (0.25 per cent) increase adds approximately $160 per month to repayments on a $1 million mortgage and can reduce borrowing capacity by around $30,000 to $40,000. Across this year’s five hikes, that’s roughly $800 a month more,” he said.

“Residential home loan rates are currently sitting around 6.14 per cent to 6.79 per cent, depending on the lender, loan size, LVR and borrower profile. After today's hike, banks will likely increase these by 0.25 per cent over the coming weeks.”

“If you haven’t reviewed your home loan this year, now is a good time to take a look,” Haynes continued.

“After five rate hikes this year, your current rate may no longer be as competitive as what’s available in the market. Refinancing may provide an opportunity to secure a more competitive rate, reduce repayments or access equity for other goals, depending on your circumstances.”

The property market, Haynes added, is shifting.

“National home prices have fallen for six consecutive months, with prices now below their March 2026 peak. More listings, longer selling times and greater vendor discounting are also giving buyers more room to negotiate,” he said.

“For those looking to enter the property market, these conditions may create more opportunities to find the right property and negotiate on price.”

The path for future rate movements will continue to depend on how inflation develops, Haynes advised, “so there is still some uncertainty around what comes next”.

“Accounting professionals can access certain market advantages that can make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for accountants to gauge what’s best for your individual situation,” he said.

“Accounting Home Loans currently have a $500 refinance rebate offer live until December 31, and it can be combined with eligible accounting industry partner rebates and lender cashback offers.”

“Contact us to learn more,” Haynes said.