RBA Holds the Cash Rate at 3.60% - What It Means for Asset Finance and Your Vehicle Loan

On 4 November 2025 the RBA announced it will keep the official cash rate at 3.60 %, the same level as its previous meeting. RBA Governor Michele Bullock confirmed that the board did not consider either a cut or a rise at this meeting, and the decision was unanimous. The reasoning given: inflation remains “materially higher than expected” and underlying inflation is still outside of the 2-3 % target band. The next decision date is scheduled for December (8-9 December, 2025).

Why the hold matters for asset finance and vehicle loans

As an asset finance brokerage focused on vehicle, equipment and asset funding, we at Motorlend pay close attention to these developments because:

a) Cost of borrowing remains elevated

With the cash rate held at 3.60 %, variable funding costs for lenders and in-turn borrowers aren’t going down. While many borrowers had hoped for further cuts, the RBA’s decision signals that relief in rates may not be immediate.
For vehicle loans this means monthly repayments may not decrease on their own shortly, and locking in favourable terms or repayment structures remains key.

b) Planning your finance structure becomes even more important

In a higher-rate environment, borrowers benefit from:

• Assessing the total cost of finance (interest + fees + residuals) rather than just the headline rate.
• Considering fixed vs variable terms: if future cuts come, a variable rate may benefit; if the RBA holds longer, a fixed-rate term may provide stability.
• Exploring flexible repayment options (balloon payments, higher early repayments) – things Motorlend can set up for you.

c) Clients may face tighter serviceability requirements

Because the RBA is keeping rates elevated to manage inflation, lenders expect borrowers to service loans under somewhat higher rate buffers. That means when you apply for an asset loan (vehicle, equipment, commercial asset), you should prepare for thorough documentation and realistic projections of cashflow or usage.

What Motorlend recommends for our clients right now

Given the current landscape, here are practical steps we suggest:

• Review your existing loans: If you have an existing vehicle or equipment loan, check the interest term, residuals, and what refinancing might deliver.
• Lock in early if you can: If you expect to purchase a vehicle or asset in the coming months, consider applying now to take advantage of current terms before any upward movement.
• Plan for repayments: Build a buffer in your budget in case rates don’t fall as quickly as hoped.
• Ask about flexible features: We can structure loans with offset accounts, early repayment flexibility, and balloon residuals to optimise your cash flow.
• Use our finance health check: At Motorlend, we provide a no-cost review of your finance setup to ensure you’re in the best position, given the RBA’s decision.

Looking ahead - what to watch

• The RBA has signalled fewer cuts may come in the near term, with inflation remaining elevated.
• The next key inflation data and labour market stats will influence the December meeting.
• For borrowers: keep an eye on lenders’ responses - sometimes funding margins tighten even if official rates stay the same.
• For asset borrowers: if you expect to purchase later in 2026, scenario-plan both modest rate reductions and more prolonged holds.

Final word

At Motorlend, we believe achieving a seamless financing experience means staying ahead of policy shifts like the RBA decision. Although the cash rate has held at 3.60 %, that doesn’t mean the finance market is static - there are still opportunities to structure smart vehicle and asset loans with competitive terms.
Connect with us to discuss how this rate landscape impacts you and how we can find the right solution for your vehicle or equipment purchase.

Ready to review your vehicle or equipment finance? Contact the team at Motorlend today and we’ll walk you through your options in this evolving rate environment.