RBA Minutes Released: Why Interest Rates Rose and What Could Happen Next
Interest rates have reached their highest level in almost 15 years. But while the economic figures suggest many Australians are managing, we’re seeing another side of the story.
At its September meeting, the Reserve Bank of Australia (RBA) increased the official cash rate by 0.25% to 4.60% — its highest level since 2011.
Around two weeks later, the RBA released its meeting minutes, explaining the concerns behind its decision and what could influence future interest rates.
Here’s what stood out to us. Read the Full Release here.
1. Inflation Is Still the Biggest Concern
The RBA remains concerned that everyday prices are rising faster than it would like.
Businesses are reporting higher costs across energy, technology and general operations, with many passing these increases on to customers.
In simple terms: The RBA wants to slow spending enough to bring inflation under control, while trying to protect jobs and the broader economy.
2. Higher Fuel and Energy Prices Are Adding Pressure
The ongoing conflict in the Middle East has pushed global oil and energy prices higher.
This affects more than petrol prices. It increases the cost of transporting goods, running businesses and providing services, with those costs often flowing through to consumers.
The RBA is concerned these pressures could keep inflation higher for longer.
3. Even the AI Boom Is Affecting Prices
Artificial intelligence was another interesting topic in the minutes.
The rapid growth in AI is creating enormous demand for technology, computer equipment and data centres, pushing up costs globally.
Australian businesses are also reporting higher software and IT expenses.
While some feel AI may bring benefits over time, the RBA is watching its impact on inflation.
4. Australians Are Spending More Carefully
The RBA acknowledged that household spending has slowed and the housing market has softened.
Property prices have fallen more than expected, while new home loan commitments have declined, particularly among investors.
However, business investment remains relatively strong, and parts of the economy are performing better than expected.
The challenge is that households are already cutting back, but inflation is still proving difficult to control.
5. The RBA Says Most Mortgage Holders Are Managing — But Not Everyone
The RBA reported that mortgage arrears remain low and many borrowers still have savings or equity in their homes.
However, it also recognised that some households are cutting back on spending to manage rising costs.
These are broad economic figures, and they don’t necessarily reflect everyone’s circumstances.
For those juggling mortgage repayments, personal loans, credit cards and everyday expenses, the pressure can be very real.
6. What We’re Seeing at WhiteStar – The Pressure Is Real
While the RBA reports that most mortgage holders are managing, we’re hearing from people who are increasingly worried about repayments, living costs and their income.
And we’re particularly concerned about small businesses.
When households tighten their belts, local businesses often feel it first. Fewer coffees, fewer meals out, delayed purchases and reduced spending on services all affect the businesses relying on those customers.
At the same time, business owners are managing rising wages, rent, insurance, energy and finance costs.
It’s a difficult cycle. Families need to spend less, but small businesses need customers to keep spending.
For many business owners, it’s not just about profitability. It’s about keeping the doors open, supporting employees and protecting their own family’s income. We understand why the RBA needs to bring inflation under control, but we also see the human side of higher interest rates.
From our perspective, the financial pressure is very real, even when the broader economic figures suggest Australians are generally coping.
7. Could Interest Rates Rise Again?
Unfortunately, the RBA hasn’t ruled out further increases.
All Board members agreed that September’s increase was necessary, particularly given concerns that inflation could remain elevated.
However, they also considered leaving rates unchanged because household spending has slowed, property prices have fallen and earlier rate increases are already having an impact.
Another increase isn’t guaranteed, but the RBA will continue monitoring inflation, employment and economic conditions before making its next decision.
8. What Does This Mean for Your Home Loan?
Higher interest rates can mean larger repayments for variable-rate borrowers and may reduce borrowing capacity for those looking to purchase or refinance.
And if you’re managing other debts alongside your mortgage, the combined repayments can add considerable pressure.
Is It Worth Reviewing Your Home Loan?
Absolutely — even if you’re not planning to refinance immediately.
A review can help you understand:
Whether your current interest rate is competitive.
If another lender may offer better pricing or features.
Whether restructuring or consolidating debts could improve cash flow.
How changing rates or income may affect your borrowing capacity.
Whether staying with your current lender is the better option.
Sometimes refinancing makes sense. Other times, negotiating with your existing lender or making no changes may be the right decision.
The important thing is understanding your options rather than assuming nothing can be done.
Our Thoughts at WhiteStar
Behind every interest rate decision are real people, families and businesses trying to make their finances work.
We’re particularly mindful of small business owners who are facing rising costs while customers reduce their spending, and people worried about their income or ability to keep up with repayments.
We understand the need to control inflation, but we also recognise the pressure many Australians are already experiencing.
While we can’t control where interest rates go next, we can help you explore your options and look for practical ways to ease the pressure.
At WhiteStar Finance & Conveyancing, we help Australians review their mortgages, explore refinancing options, consolidate debts where appropriate and plan their next property purchase.
You don’t need to wait until repayments become uncomfortable to find out whether there’s a better way forward.
Our job is to show you what’s possible. Your job is to decide what’s right for you.
Talk to WhiteStar Finance & Conveyancing to understand your options, improve your finances, and plan your next steps with confidence.
Source: Reserve Bank of Australia – Monetary Policy Board Meeting Minutes, 29 September 2026
General information only. Lending options depend on individual circumstances. Debt consolidation may reduce monthly repayments but increase total interest costs over time.
Frequently Asked Questions
Unlike going directly to a bank, we compare multiple lenders and tailor a solution to suit you.
With over 30 years’ experience, we specialise in both straightforward and more complex scenarios — often finding solutions where others can’t.
As mortgage brokers, we’re also bound by Best Interests Duty, meaning we’re legally required to act in your best interests — not the lender’s.
We can review your options (including your credit file) without leaving multiple enquiry marks that may impact your score, so you can explore what’s possible with confidence.
With strong reviews, real client results, and conveyancing support in Victoria, we’re here to guide you from start to finish.
Read our Reviews and Case Studies to know more
Poor credit generally refers to your overall credit history, including missed repayments, defaults or high levels of debt.
Your credit score is a number that reflects this history at a point in time. While your credit score is important, lenders also look at the bigger picture — including your income, expenses and ability to repay.
This means some borrowers may still be eligible for home loan if their credit score is lower. Lenders have different criteria, it about knowing who will help with a bad credit score and also who will help with bad credit like defaults and arrears.
Yes, a home loan is often still possible after missed repayments. Some lenders offering bad credit home loan solutions or poor credit options will look at your current position and ability to meet repayments moving forward. Also the story and events behind these arrears are also important for finding what options are available. Our Home Loan Brokers often look deeper and try to get an everyday home loan solution if we can. Its important to understand your options before the arrears grow. We always recommend in times of financial pressure to pay the mortgage first. Ideally come to an experienced broker to not end up Trapped with finances you cannot manage as soon as possible.
Great Case Study
Yes — using equity to pay off debts is one of the most common reasons people refinance.
By rolling personal loans, credit cards, and other debts into your home loan, you can often simplify multiple repayments into one and improve your overall cashflow.
In many cases, we’ve helped clients significantly reduce their monthly commitments — giving them some much-needed breathing room.
Using this approach to manage cost of living and lifestyle pressures can be helpful, especially as a reset.
However, it’s important to be mindful of relying on this too often, as it can increase interest over time by spreading short-term debts over a longer loan term.
Yes — refinancing can reduce repayments by securing a lower rate, restructuring your loan, or consolidating debts.
We help clients with this every day and have many case studies where repayments have reduced significantly.
Where possible, we aim to maintain your loan term, but sometimes extending it forms part of the solution. The key is ensuring the refinance genuinely improves your position.
Read a Case Study Here
Yes in many cases you can get a home loan with Bad Credit. Options are very much dependent on the situation and financials.
You Might Have More Options Than You Think
Many people come to WhiteStar thinking they need a bad credit home loan and that their options are limited.
In many cases, once we understand the full background, we’re able to help secure a standard home loan — simply by matching the right lender and approach to the situation.
Just because your credit score is low doesn’t always mean you’re out of options.
See some of Our Case Studies
This could be for one or more reasons. It could be income and servicing criteria not being met, credit conduct or credit score, lending policy or even security criteria not being met. Using a broker is a great way to avoid another decline or to learn more about why.
There isn’t always a perfect time to refinance — but it’s smart to keep an eye on your options.
What you see in the media or online doesn’t always reflect what’s actually possible for your situation.
In most cases, it’s better to review your options before financial pressure builds. Acting early can give you more flexibility, improve your chances of approval, and reduce stress if things become tighter down the track.
