The Decision
The RBA Board decided to hold the cash rate at 4.10% on 18 March 2026. The Board noted that inflation is continuing to moderate but remains above the 2-3% target band. The labour market has softened slightly but remains resilient. The Board wants to see further evidence that inflation is sustainably returning to target before cutting again.
This was the first hold after the 25 basis point cut delivered in February 2026, which brought the cash rate down from 4.35% to 4.10%. The February cut was the first reduction since 2020 and marked the beginning of the current easing cycle.
What Changed Since the Last Meeting
- CPI came in at 3.2% for the quarter, down from 3.5%.
- Unemployment edged up to 4.3%.
- Wage growth eased to 3.4%.
- Housing prices stabilised in most capital cities.
The overall picture is one of gradual cooling. Inflation is heading in the right direction but has not yet reached the RBA's 2-3% target band. The labour market remains tight enough to support spending, which makes the Board cautious about cutting too quickly.
Impact on Variable Home Loan Rates
Since the cash rate was held, variable rates will not change this month. If you are on a variable rate, your repayment stays the same. The current average variable rate for owner-occupiers on Lendera's panel is 5.89%.
Fixed rates may edge slightly lower as markets continue to price in future cuts. If you are considering fixing, compare the current fixed rates against your variable rate carefully.
For detailed rate data across all loan types, see our full March 2026 Rate Report.
What Borrowers Should Do Now
If your rate is above 6.00%: review your rate immediately. Competition means better deals are available, and you should not wait for another RBA cut to take action. A rate review with a broker can identify savings today.
If you are on a fixed rate expiring soon: start comparing 6 to 8 weeks before your fixed term expires. The revert rate your lender offers will almost certainly be higher than what you can negotiate or find elsewhere.
If you are about to buy: variable remains the better bet in the current cycle. With further cuts expected, a variable rate allows you to benefit from reductions as they happen.
If you are an investor: review your interest-only rates. IO rates have dropped less than P&I rates this cycle, and the gap between lenders on IO pricing is wider than usual.
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Compare My Rates →Cash Rate History
| Date | Decision | Cash Rate |
|---|---|---|
| Mar 2026 | Hold | 4.10% |
| Feb 2026 | Cut 25bps | 4.10% |
| Dec 2025 | Hold | 4.35% |
| Nov 2025 | Hold | 4.35% |
| Sep 2025 | Hold | 4.35% |
| Aug 2025 | Hold | 4.35% |