Interest Rate Predictions Next 5 Years Australia: RBA Cash Rate Forecast 2025-2030

 

Interest rate predictions for the next five years show Australia entering a new phase of easing. After three cuts in 2025, the RBA has set the cash rate at 3.60% and is expected to reduce it further to 3.35% by November. Analysts believe the rate will fall as low as 2.85% by mid-2026, offering mortgage holders short-term relief.

By 2027, the cash rate is forecast to stabilise before gradually increasing from 2028 onwards. Economists see rates returning to 3.50–3.75% by 2030, a level consistent with long-term averages. This path signals a shift from immediate household relief to preparing for steady rises in the years ahead.

Financial markets have already priced in this easing cycle. For a closer look at how traders view rate moves, the ASX expectation curve highlights real-time futures pricing. For the full forecast, read the main Star Investment interest rate blog.

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