The Reserve Bank of Australia (RBA) cash rate is currently 3.60% as of January 2026. It is the interest rate charged on overnight loans between financial institutions and acts as the primary tool for implementing monetary policy to influence inflation, interest rates for consumers, and economic activity.
The cash rate is Australia's official interest rate which is currently held at a target of 3.60% by the Reserve Bank of Australia (RBA). The cash rate is determined by the Reserve Bank of Australia in a board meeting eight times per year.
Are interest rates going up or down in the UK in 2025?
UK interest rates are expected to go down further in 2025, continuing the trend from late 2024 and December 2025 when the Bank of England began cutting rates from their peak, aiming to bring inflation back to the 2% target, though the pace and exact timing of future cuts depend on evolving economic data like wage growth and services inflation.
A good interest rate for a mortgage is about 4.75%. It is lower than the current average rates for both a 15-year fixed loan and a 30-year mortgage, which makes it favorable. In November 2022, the average 30-year fixed rate was 6.61%. This indicates that 4.75% is a good rate for borrowers seeking a mortgage.
What is the cash rate? And how is it different to interest rates? | News Glossary
Are interest rates expected to go up or down in 2025?
Experts' interest rate prediction for 2025 suggests that while rates may decrease, they may not drop significantly. According to some financial institutions, the average 30-year fixed mortgage rate could settle between 5.5% and 6.5% by mid-2025.
What is the difference between cash rate and interest rate?
The cash rate is the interest rate that banks pay to borrow money from each other overnight. It reflects the overall cost of short-term funds in the economy. The interest rate is what a lender charges a borrower for using its money. In home loans, it determines how much interest you pay on top of your principal.
Mortgage rates might drop to or even below 3% in the coming years (2026-2027), with many analysts predicting a gradual decrease as central banks cut base interest rates to combat inflation, but it's not guaranteed and depends heavily on inflation staying low and global economic stability. While some forecasts suggest rates could dip below 3% for prime borrowers, others warn of potential plateaus or increases if inflation proves stubborn, with rates potentially settling around 3-3.5% in 2026 before any further moves.
The UK is rapidly moving towards being a low-cash, but not fully cashless, society, with digital payments dominating, yet cash remains crucial for millions, especially vulnerable groups, leading to government efforts to protect access via legislation, banking hubs, and ATMs, even as some businesses go card-only and digital ID plans emerge. While cash use has plummeted (less than 10% of payments in 2024/25), the Bank of England and officials stress that a completely cashless system isn't feasible or desirable yet, focusing on maintaining choice and access for everyone, including the elderly and low-income individuals.
Yes, 6.09% is considered a reasonable interest rate in the current Australian market. Historically, the average mortgage rate from 1970 to 2025 has hovered around 7-8%, with rates since 2000 closer to 5-6% and more recently around 4% since 2015.
The cash rate is the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage and deposit rates.
What is the next Bank of England interest rate prediction?
Experts predict inflation will keep dropping, possibly hitting 2.5% by late 2026. As a result, it's looking likely that the Bank of England will cut the base rate further to 3.5% or even 3.25% in 2026, although some are predicting it could drop as low as 3%!
