RBA Interest Rate October 2025: What It Means For Family Businesses And Farmers
- Future Accounting
- Oct 14
- 4 min read
Written by: Chris Mulcahy
How the RBA interest rate October 2025 affects your loans, cash flow, and future plans
The Reserve Bank of Australia (RBA) has decided to keep the official cash rate steady at 3.60 percent following its meeting on 30 September 2025.
This RBA interest rate October 2025 decision marks the third consecutive pause after a series of cuts earlier this year and it’s a move that carries important implications for family businesses and farming operations across Australia.
Why the RBA held rates steady in October 2025
The RBA interest rate October 2025 decision reflects a cautious approach as inflation continues to ease but remains above target. The RBA is walking a fine line, aiming to support economic growth while ensuring inflation stays under control.
Here’s what’s driving the decision:
Inflation: Still around 3 percent, slightly above the RBA’s target range of 2–3 percent.
Labour market: Unemployment sits near 4 percent, showing ongoing resilience.
Business investment: Slowing in some sectors, especially construction and agriculture.
Government spending: Remains high and fuelling inflation.
Global conditions: Uncertainty abroad continues to influence domestic confidence.
In simple terms, the RBA believes the economy is cooling but not enough yet to justify another cut.
What experts expect next for interest rates
Economists believe the RBA interest rate October 2025 decision marks the start of a holding pattern before rates begin easing again in 2026. Markets had anticipated another reduction this year, but that now appears less likely after the latest inflation data.
Source | Forecast | Timing | Notes |
CBA Economics | Cut to 3.35% | February 2026 | Inflation easing slower than expected |
Reuters Survey (39 Economists) | Hold, then gradual easing | Early 2026 | RBA remains in “watch and wait” mode |
ASX Rate Tracker | 50/50 chance of cut | Late 2025 | Depends on upcoming CPI and jobs data |
For now, rates are expected to remain steady through summer, giving households and businesses some breathing space and a clearer picture for planning ahead.
How the decision affects farmers and family businesses
For family businesses and farmers, the RBA interest rate October 2025 outcome influences loan costs, operating expenses, and investment timing. Even a small move in the cash rate can have significant impacts on working capital and long-term finance.
Borrowing and loans
No immediate change to existing variable loan repayments.
Future cuts are delayed, so interest relief may take longer to arrive.
Fixed-rate loans remain a smart option for those wanting cost certainty.
Competitive pressure between banks could help you save
Although the RBA has paused, competition between lenders is heating up.
Banks and finance providers are working hard to attract high-quality business borrowers, offering sharper fixed-rate deals, refinance cashbacks, and flexible repayment options.
This competition can work to your advantage:
Fixed-rate loans: Some lenders are trimming rates ahead of expected RBA cuts.
Variable loans: Banks may offer discounts or loyalty rate reductions.
Refinancing incentives: Rebates and fee waivers are reappearing across the market.
Now is the time to review your loans and financing arrangements. Even a small reduction in interest rates can lead to substantial savings on equipment, property, or operating finance.
Operating costs and cash flow planning
Input costs like fuel, fertiliser, and freight remain elevated.
Supply-chain inflation is easing but still affecting margins.
With interest rates steady, it’s a good moment to stress-test budgets and plan for continued stability rather than sudden relief.
Maintaining a solid cash flow buffer will help protect your business from short-term cost shocks and position you to take advantage when lending conditions improve.
Investment and business planning
Stable rates mean now is a good time to focus on strategy and efficiency:
Delay non-essential capital upgrades until borrowing conditions improve.
For essential purchases, especially those that reduce labour or energy costs, explore refinancing or fixed-rate offers.
Keep long-term goals in sight: use this steady period to prepare for the next stage of economic recovery.
Our take on the big picture
The RBA interest rate October 2025 announcement shows that inflation is improving, but the economy still needs careful management. By holding at 3.60 percent, the RBA is signalling a cautious optimism, steady enough to support growth, but firm enough to avoid reigniting inflation.
For family businesses and farmers, that means:
Reviewing debt and loan structures regularly
Maintaining working capital flexibility
Monitoring inflation and wages data
Staying in close contact with lenders and advisers
Looking ahead
Following the RBA interest rate October 2025 decision, most forecasts suggest the next move could come in early 2026, provided inflation continues to moderate. Until then, steady rates mean steady strategy, plan conservatively, protect cash flow, and prepare to move quickly when the easing cycle begins.
Speak with our team
At Future Accounting Group, we specialise in helping family businesses and farming clients make confident financial decisions. If you’d like tailored advice on managing debt, reviewing your finance strategy, or improving cash flow, we’d love to help.
Book an appointment with our team today and let’s make sure your business is ready for what’s next.
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.