What happened
CommBank Economics published updated interest rate forecasts indicating the Reserve Bank of Australia will keep the official cash rate unchanged at 4.35% throughout the remainder of 2026. The bank expects monetary policy to remain in a holding pattern, pushing any potential interest rate reductions out into 2027 as inflation continues to cool gradually.
Why it matters here
For Australian mortgage holders and property investors, extended steady rates mean borrowing costs will remain high throughout the year. Lower interest rate relief is off the table for 2026, impacting household cash flows and borrowing capacity. Fixed-rate rolls and variable repayments will continue to press consumer spending.
What to watch
The Reserve Bank of Australia's upcoming Monetary Policy Board decision scheduled for 11 August 2026 at 2:30 pm AEST, followed by Governor Michele Bullock's public appearance.
Source
commbank.com.au