The Reserve Bank of Australia (RBA) meet throughout the year to discuss economic indicators that influence the banking system - one of these is the ‘official cash rate’, also known as OCR.
What is the official cash rate?
The official cash rate is the interest rate charged on unsecured overnight loans between banks. In simple terms, it’s how much it costs banks to borrow from each other.
When does the RBA meet?
The Reserve Bank of Australia’s board meets eight times a year, spanning across two days each time. The meetings start on a Monday afternoon and conclude the following day. The decision is published on the RBA website at 2.30 pm after each meeting.
The RBA board meeting schedule in 2025 is:
17–18 February
31 March–1 April
19–20 May
7–8 July
11–12 August
29–30 September
3–4 November
8–9 December
Why does the RBA change the cash rate?
At each meeting, the RBA decides whether to increase or decrease the cash rate to balance economic stability, whilst protecting and promoting financial prosperity for Australia.
The recent cost of living pressures, also known as inflation, has encouraged the RBA to increase the cash rate to counter this inflation. By making it more expensive for Aussies and businesses to borrow money, it reduces overall demand for products and services. This helps reduce prices as supply is greater than demand.
Why does this affect my interest rate?
The RBA’s decision to increase the official cash rate makes it more expensive for lenders to borrow money – a key consideration for how lenders price their loan. Learn more about how interest rates are determined here.
What does Unloan do when the cash rate changes?
When the RBA decides to increase or decrease the cash rate, Unloan reviews the impact on our Live-In and Invest interest rates. We’ll communicate any changes to our interest rate on our website, and via email.
We remain committed to providing Aussies with a home loan that’s easy to get, and easier to live with. Learn more about our award winning value here.