RBA Pauses at 3.60%

Why This 'Hold' is a Major Signal for Property Investors Date: November 11, 2025 Author: The Way to Invest

November 11, 2025, the Reserve Bank of Australia (RBA) announced it is holding the official cash rate at 3.60%.

On the surface, a "hold" sounds like a non-event. But if you're a savvy investor, you know the real story is in the details—and the details are signalling that the pressure is far from over.

The RBA is in a tough spot. Underlying inflation has ticked up to 3.0%, and the Australian housing market is strengthening, with prices back on the rise.

This isn't a relaxed pause. It's a cautious one. The RBA is watching, and this hold is a clear message that they are ready to act if inflation doesn't cool.

So, what does this actually mean for you?

For Australian Homeowners & Buyers

For anyone with a variable-rate mortgage, today brings a brief sigh of relief. Your repayments aren't climbing today.

But don't get too comfortable.

The RBA has made it clear that with "persistent" inflation, the bias for a future hike remains. This hold provides a moment of stability, but the warning is clear. For new buyers, this locks in the current (high) borrowing costs for now, but uncertainty remains the dominant theme.

For the Borderless Investor

If you're building a global portfolio, you might ask why an RBA decision in Sydney matters to you.

It's a critical piece of the global puzzle. Here’s why.

1. Currency Strength & Your Buying Power

Central bank policy is a primary driver of currency value. By holding rates high to combat inflation, the RBA is supporting the strength of the Australian Dollar (AUD). For an international investor, this has two effects: it can make new Australian assets (like property) more expensive to acquire, but it also increases the value of the Australian assets you already hold when measured in your home currency.

2. A Signal for Global Trends

No central bank operates in a vacuum. The RBA's struggle with sticky, post-peak inflation is a story being repeated worldwide. This 'cautious hold' is a key signal that the global fight against inflation isn't over. It indicates that the pivot to rate cuts many were hoping for is likely further away than the markets think—not just in Australia, but potentially in the US and Europe too.

3. Portfolio Diversification & Risk

This is the most important part. A core tenet of borderless investing is managing risk. Understanding Australian monetary policy directly impacts your diversification strategy. Does a strong AUD and a high-rate environment make Australian assets a 'safe haven' in your portfolio, or does it present a currency risk you need to hedge against? This data point is essential for balancing your global asset allocation.

The Takeaway: Data Over Drama

A single rate hold is just one data point. But for the savvy investor, it's a crucial one.

It tells a story about inflation, market sentiment, and currency risk. Staying on top of these local policies isn't just for locals—it's a non-negotiable for anyone serious about building a diversified, data-driven global portfolio.

Don't just read the headline. Understand the strategy behind it.