What Happens if the RBA 25bp Rate Cut?
If the RBA decides on a 25 basis point (0.25%) cut, the cash rate would move from 4.10% to 3.85%. Here's what that means for mortgage repayments.
Current cash rate
4.10%
Rate after 25bp rate cut
3.85%
-25bp
Mortgage repayment impact
Based on a 30-year principal & interest loan with 2.5% bank margin above the cash rate.
| Loan size | Current | After 25bp rate cut | Change |
|---|---|---|---|
| $300,000 | $1,916/mo | $1,867/mo | -$49/mo |
| $500,000 | $3,193/mo | $3,111/mo | -$82/mo |
| $750,000 | $4,790/mo | $4,667/mo | -$123/mo |
| $1,000,000 | $6,387/mo | $6,222/mo | -$164/mo |
Which meetings price a 25bp rate cut?
| Meeting | Probability |
|---|---|
| November 2026 | 2% |
| December 2026 | 10% |
| February 2027 | 11% |
| March 2027 | 13% |
| May 2027 | 17% |
| June 2027 | 19% |
| August 2027 | 16% |
| September 2027 | 17% |
| December 2027 | 10% |