RBA Interest Rate Decision November 2025: What it Means for Family Businesses and Farmers
- Future Accounting
- Nov 6
- 3 min read
Written by: Chris Mulcahy
How the RBA interest rate decision November 2025 affects Australian family businesses
The RBA interest rate decision November 2025 left the cash rate unchanged at 3.60 %, as widely expected.
While the decision didn’t surprise markets, the Governor’s comments sent a clear signal - inflation remains stubbornly high, and interest rate cuts are not guaranteed in the near term.
For family businesses and farmers, this update is an important reminder to review cashflow, strengthen debtor management, and plan ahead with confidence.
What the RBA said
Inflation has picked up again, led by higher housing, rent and service costs.
The economy is still operating close to full capacity, with ongoing labour shortages and wage pressure.
The RBA Board believes monetary policy is “close to neutral” — not favouring further cuts.
The Governor emphasised that “there’s no preset path”, meaning rates could stay steady for longer or even rise again if inflation persists.
What this means for families and small businesses
Borrowing costs are likely to stay higher for longer
Interest rates are expected to remain around current levels for much of 2025. Plan for a steady, not falling, cost of finance.
Inflation pressure remains real
Prices for inputs, fuel, equipment and rent are likely to keep rising. Be cautious with new spending and lock in supply or finance terms where possible.
Revisit your cashflow and investment plans
Check that your cashflow can handle current interest costs. Stage non-essential capital spending until the outlook becomes clearer.
Tighten debtor and cash-flow management
In a higher-cost environment, delays in collecting debts can quickly erode margins. Review debtor terms, follow up on overdue accounts promptly, and ensure credit limits remain appropriate.
Strong debtor management not only protects cashflow but also reduces reliance on overdrafts or short-term finance, which remain expensive while rates stay high.
Reassess succession or buy-out planning
Many family-business plans assume lower rates or easier refinancing. Test whether intergenerational transfers and business purchases remain viable under higher borrowing costs.
Keep your financial buffers strong
A strong cash buffer provides flexibility if costs or rates rise. This is especially important for farming families facing seasonal and commodity volatility.
A prudent next step
We suggest all business and farming clients take the opportunity to:
Review debt servicing capacity and test for a “higher-for-longer” rate scenario.
Revisit your business or family succession plan with updated financing assumptions.
Tighten debtor management and plan conservatively for cost increases through 2025.
The RBA interest rate decision November 2025 shows that inflation pressures remain — but stable rates offer a window to strengthen your position. Now is the time to consolidate, review and plan strategically.
Plan ahead with confidence
Our Future Prosperity Process is designed to help families and business owners take control of their financial direction, from structure and cashflow to succession and long-term security.
If you’d like to review your position in light of the latest RBA decision, book an appointment with our team today. Together, we’ll help you build confidence and clarity for the road ahead.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.