The RBA has followed market consensus leaving the official cash rate unchanged at 0.25 per cent, which the central bank has earlier outlined to be the lower bound.

Before the rate announcement, comparison site Finder surveyed 23 leading economists with everyone suggesting the Reserve Bank will hold interest rates.

One of the economists who predicted a hold, was AMP Capital’s chief economist Dr Shane Oliver, who suggested back-to-back cuts was as far as the RBA should go.

Dr Oliver said history has shown the folly of going to negative interest rates in other countries.

"0.25 per cent has long been identified by the RBA as the lower bound,” said Dr Oliver.

“There is little benefit to be gained by going to zero or negative based on the experience of Europe and Japan.”

Cash rate to stay put, but QE on cards

All 23 economists and experts surveyed expect the Reserve Bank of Australia (RBA) to hold the cash rate at 0.25 per cent on Tuesday.

Most economists highlighted that the RBA will treat 0.25 per cent as if it is 0 per cent and have no appetite to cut further. 

“This leaves only one effective tool in the RBA’s armoury: quantitative easing,” said Finder’s insights manager Graham Cooke.

Quantitative easing (QE) is a process where the central bank creates new cash to decrease, or ease, the cost of borrowing.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Banking

Central banks set to influence global markets with key rate decisions

In a week that could define the economic landscape for the remainder of the year, central banks across the globe are poised to make significant interest rate decisions. State Street Investment ...Read more

Banking

Global payment companies see 8% revenue growth in 2025, GlobalData reports

The global payments industry demonstrated robust growth in 2025, with the top 20 publicly listed payment companies reporting an 8% increase in combined revenue, totalling $280 billion. This growth, as ...Read more

Banking

Banks urged to embrace existing payment technologies over AI hype

In the rapidly evolving landscape of financial technology, the focus has increasingly shifted towards artificial intelligence (AI) as the next frontier for innovation. However, Ian Boyd, General ...Read more

Banking

EMEA banks enjoy profit growth amid revenue challenges in 2025

In a year marked by economic turbulence and geopolitical uncertainties, the largest banks across Europe, the Middle East, and Africa (EMEA) have reported a paradoxical trend: shrinking or stagnant ...Read more

Banking

Australian major banks demonstrate resilience amid economic uncertainty

In the face of economic headwinds, Australia's major banks have reported robust half-year results, showcasing their resilience amid rising uncertainty. According to KPMG’s Australian Major Banks Half ...Read more

Banking

RBA's new ruling on card surcharges sparks debate among businesses and banks

In a significant move aimed at enhancing transparency and fairness in the Australian payments landscape, the Reserve Bank of Australia (RBA) has announced the removal of surcharging on debit, prepaid, ...Read more

Banking

Australian SMBs lose two business weeks annually to late payments, report finds

In a startling revelation, the latest report by GoCardless, a global bank payment company, highlights the crippling impact of late payments on small and medium businesses (SMBs) across AustraliaRead more

Banking

Brighten’s reverse‑mortgage bet: why a niche product could be non‑banks’ next profit engine

Brighten has created a dedicated reverse‑mortgage leadership post, signalling a strategic push into equity release as Australia’s demographic curve tilts older and wealth concentrates in housingRead more