RBA tipped to raise rates again as borrowers brace for decision

RBA tipped to raise rates again as borrowers brace for decision

Mark Stevenson, Managing Director of Evolve Lending & Finance, was quoted in The Adviser ahead of the Reserve Bank of Australia’s May 2026 cash rate decision, with major bank economists broadly expecting the RBA to lift the cash rate by a further 0.25 per cent to 4.35 per cent. The article noted that, if confirmed, the move would represent the third consecutive rate rise, although the decision was expected to be finely balanced.

Mark said that while some borrowers focus heavily on the headline rate decision, the more important issue is how any increase flows through to repayments, borrowing capacity, refinancing options and household cash flow. He noted that borrowers should avoid making rushed decisions based purely on the announcement and instead review whether their current loan structure remains appropriate for their circumstances.

The article reported that inflation pressures remained a key concern for the RBA, with economists pointing to elevated headline inflation, housing costs, transport costs and fuel prices as factors likely to influence the Board’s decision. While trimmed mean inflation had softened slightly, several major bank economists still expected the RBA to proceed with another increase rather than pause.

Mark said that another rate rise would place further pressure on many households, particularly borrowers with larger mortgages, variable-rate loans, expiring fixed rates or limited repayment buffers. He said the right response would depend on each borrower’s position, including their lender, rate type, repayment history, equity position, income, expenses and future borrowing plans.

If the latest RBA decision has affected your repayments, refinancing options or broader lending strategy, contact Evolve Lending & Finance to review your current loan structure and understand what options may be available.