P & J Financial Solutions - Finance Brokers

11/08/2026

Following three hikes and a hold, the Reserve Bank of Australia (RBA) has handed down its latest Cash Rate Decision today. Unanimously, the (RBA announced it would hold the official Cash Rate at 4.35% being the second time this year the RBA has opted to hold the Cash Rate, following three consecutive hikes in February, March, and May. The decision was broadly expected, with the major Banks forecasting a hold, proceeded by a gradual easing towards the latter half of 2027.

The RBA stated that the decision was motivated by the fact that “financial conditions are now tighter than they were, and the Economy appears to be slowing as expected. With Monetary Policy judged to be somewhat restrictive, the Board decided to leave the Cash Rate target unchanged while it assesses how the Economy is evolving”. Despite the call, the RBA acknowledged that Inflation remained above its 2%–3% target band and it was “focused on ensuring that high Inflation does not become embedded”.

In the 12 months to June 2026, the Consumer Price Index (CPI) rose 3.8% per cent, down from 4% per cent in the year to May and from its peak of 4.6% in the year to March. Trimmed Mean Inflation remained at 3.6% per cent over the same period, unchanged from May.

The decision comes during a tricky time for Australia’s Housing Market, with Loan applications plummeting and Lenders and Brokers reporting reduced activity. The RBA has pointed to a shift in momentum across the Housing Market, noting in its decision that “housing prices are falling in some capital cities and new Housing Loans declining noticeably. There are signs that Consumer spending growth is slowing gradually as expected, while growth in business debt and investment is strong,” the RBA said.

However, Inflation remains a point of issue for the RBA, with the Board warning that the disruption to global oil supply was adding to Inflationary pressures. “The disruption to global oil supply is adding directly to Inflation and there are indications that higher fuel prices are being passed through to prices of other goods and services, so Inflation is likely to remain high for some time” the RBA commented.

From the perspective of P & J Financial Solutions, we believe there is little hope left for Interest Rate cuts this year, as we do not expect Inflation to return to its target range until late 2027, with some upside risks to this projection. The RBA will continue to do what it considers necessary to bring Inflation sustainably back to target, including increasing the Cash Rate target further if upside risks materialise.

P & J Financial Solutions feel that with Interest Rates remaining at 4.35%, Borrowing Capacity remains a key issue, however the Rate call has brought a degree of certainty to the market in the medium term. From our perspective, the key takeaway is stability as Borrowers have had to navigate a lot of uncertainty over the past few years, so a period where Interest Rates aren’t constantly moving gives people a chance to plan ahead with more confidence. A Rate hold will not any Borrowing capacity or make property more affordable, it may help encourage people who were waiting on the sidelines back into the Property Market. There are many clients over the past 12 months who were less concerned about the actual Interest Rate and more concerned about not knowing where rates were heading next. A stable Interest Rate environment helps people feel more comfortable moving forward with a purchase, refinance or investment decision. In a sense, people will feel like the “goalposts have stopped moving”, at least for the present time.

As the Interest Rate forecast appears to be entering a period of relative stability, it creates a good opportunity for Borrowers to review their current Loans, because many Lenders remain very competitive when they’re looking to attract new business. The higher Interest Rate environment and slowdown in mortgage activity gives Borrowers a somewhat stronger hand when it came to refinancing and capitalising on increased Lender competition. Banks are competing for business and pricing loans differently; therefore Borrowers shouldn’t necessarily sit around waiting for the RBA to cut Interest Rates as there can still be opportunities to get a better deal now.

Therefore, all Borrowers (both personal and / or business) possess the ongoing need for experienced and knowledgeable advice and guidance when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” as the prevailing Economic climate will remain changeable for some time. As such, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such advice, guidance, and assistance in a friendly and professional manner.

16/06/2026

The Reserve Bank Of Australia (RBA) has today announced that it will hold the official Cash Rate steady at its current level of 4.35%. The decision, was broadly forecast by major Bank Economists and Financial Markets, and pauses the current tightening cycle, which first began in February 2026. The RBA’s decision to maintain the Cash Rate at its current setting suggests it is prioritising a wait-and-see approach to ensure Inflationary pressures are not sustained and to assess the economic impacts of the three consecutive Cash Rate hikes between February and May.

The decision will provide temporary relief for Australia’s mortgagors, with Australian households already facing mounting financial strain; and the RBA’s Policy decision was unanimous.

In its post meeting statement, the RBA Board stated that it remained "focused on ensuring that Inflation does not become embedded once the impulse from higher oil prices has passed through. To achieve this, growth in demand needs to slow to reduce capacity pressures and help bring Inflation back to target”. Following the three increases in the Cash Rate target since the beginning of the year, financial conditions are now tighter than they were, and there are signs that the Economy is slowing as expected. “But inflation is still too high and the Board judged that it was appropriate to leave the Cash Rate target unchanged while it assesses the response to previous Interest Rate rises and the impact of the oil supply disruption” they commented.

From the perspective of P & J Financial Solutions, we believe that today’s Cash Rate Decision was expected and that the Monetary Policy Board is likely waiting for more data to become available to allow them to fully assess what impact the three consecutive rate hikes this year are having on Inflation. While Inflation remains above the RBA's 2%–3% target band, conditions still remain of a concern and need careful monitoring as a single pause does not translate into meaningful relief for households still adapting to a much higher repayment base. Today’s decision should be seen as part of a longer adjustment phase, not an indication that the cycle has turned in Borrowers’ favour.

We also believe that improving conditions in the Middle East and expected further clarity in relation to the Federal Budget changes could help ease rising uncertainty in the Lending Market.

Several economists have suggested that the RBA may now move to an extended Cash Rate “hold” period, driven by weakening Economic momentum (Australia’s Gross Domestic Product grew by just 0.3% quarter-on-quarter (to start 2026) and emerging slack in the Labour Market (the National jobless rate increased from 4.3% to 4.5% per in April). Evaporating Consumer and Business confidence, plummeting expectations, and stabilising Geopolitical and Global tensions have also been listed as key factors for the RBA ”pumping the brakes”. However, the RBA is also grappling with persistent pressures, with trimmed mean Inflation (the RBA’s preferred gauge) ticking upward from 3.3 to 3.4% in April, well above their target band of 2-3%.

All four major Banks lined up behind a unified call that the Cash Rate would remain unchanged in June – yet have offered strikingly different blueprints for what happens over the rest of 2026 and into 2027. The National Australia Bank Limited last week abandoned its expectation of a further 25-basis-point increase, recasting 4.35% as the height of the tightening cycle and forecasting the next move to be a cut towards the middle of 2027. The Commonwealth Bank of Australia and the Australia and New Zealand Banking Group Limited have been predicting an extended hold period since the May meeting – with both banks forecasting Cash Rate reductions to commence in the second half of 2027. Westpac Banking Corporation, which was anticipating a hold result in June, remains the outlier among the major Banks - and believes the RBA will hike the Cash Rate at its August and September meetings due to stubbornly high Inflation.

As the Interest Rate forecast remains somewhat “muddled”, many Australians are unknowing victims of ‘Rate Creep”, where Lenders raise rates for existing customers while offering discounted rates to new borrowers. This means they could be paying more in repayments than they should be, and this is where a review of options by an independent Broker becomes essential.

Therefore, all Borrowers (both personal and / or business) possess the utmost need for knowledgeable and experienced guidance and advice when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” as the prevailing Economic climate will remain uncertain for some time. As such, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such assistance, guidance, and advice in a professional and friendly manner.🤔

19/05/2026

A positive move from the Western Australian Government however one feels that the changes do not go far enough. 🤔

The State Government has announced budget measures in relation to the first home owner grant, first home owner rate of duty, and foreign buyers duty and the off-the-plan duty concession.

05/05/2026

The Reserve Bank Of Australia (RBA) has made its Monetary Policy decision for May 2026, responding to renewed Inflationary pressures and a mounting global oil shock, determining to lift the official Cash Rate by 25 basis points to 4.35%.

Today’s decision marks the third consecutive 25-basis-point hike for the year, continuing the tightening cycle that began in February when the RBA first lifted interest Rates to cool stubborn Inflation.

The last time the official Cash Rate was at 4.35%, it remained there for over a year - with the RBA increasing the Cash Rate in November 2023 to 4.35% and holding it there until February 2025. The RBA stated that today’s move was driven by persistently high Inflation, a firm Labour Market, and a rapid surge in fuel costs sparked by the military conflict in the Middle East.

The RBA Board reaffirmed its dedication to bringing inflation back into the 2.00% –3.00% target band, whilst it’s Minutes for the May rate decision read: “As expected, developments in the Middle East are having an impact on Inflation. Higher fuel prices are adding to Inflation and there are indications that this is likely to have second-round effects on prices for goods and services more broadly. This Inflation impulse is in addition to the high Inflation recorded around the start of 2026, reflecting capacity pressures in the Economy. In light of these considerations, the Board assessed that Inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including Inflation expectations. It was therefore judged appropriate to increase the Cash Rate target”.

The RBA commented further: "The Board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. In doing so, it will pay close attention to developments in the global Economy and Financial Markets, trends in Domestic demand and the outlook for Inflation and the Labour Market. Having raised the Cash Rate three times, Monetary Policy is well placed to respond to developments, and the Board is focused on its mandate to deliver price stability and full employment. It will do what it considers necessary to achieve that outcome."

From the viewpoint of P & J Financial Solutions, today’s move comes after stubborn Inflationary pressures. The Consumer Price Index indicator for March came in at 4.6%, jumping from 3.7% in February, the largest monthly increase since the Australian Bureau Of Statistics began the series in 2017. While the RBA’s preferred trimmed mean Inflation held steady at 3.3%, it increased 0.8% over the quarter. As such, the RBA moved to increase the Cash Rate again rather than wait until the next Cash Rate decision in mid-June.

While the Commonwealth Bank of Australia, Australia & New Zealand Banking Group Limited, and the National Australia Bank Limited all predicted a single May hike followed by an extended period on hold, Westpac Banking Corporation is forecasting two more hikes in June and August of this year.

We believe that that the Cash Rate rise risks compound pressure in both the owner occupier and rental markets; and with the Federal Government set to release its Budget next week, maybe it is time for the Federal Government to provide support to home buyers; including walking back any potential changes to Capital Gains Tax and Negative Gearing, which, when coupled with rising Interest Rates could be an “economic calamity” .

Borrowing Capacity and Debt Servicing is still very tight and any Interest Rate increase is damaging that; with Borrowing Capacity decreasing. While the RBA would have been “hesitant to punish consumers already dealing with higher fuel prices thanks to the Middle East conflict,” the RBA Board is focused on “taming” inflation. Mortgage holders will be hoping the upward Interest Rate cycle will be a temporary one if the Iran war is resolved and fuel prices fall as the increased costs of fuel and the knock-on effects have impacted the budgets of everyone, and people have been tightening their belts.

More than ever the need for experienced and knowledgeable advice and guidance is now critical for all Borrowers (both personal and / or business) when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” on their existing Lending facilities which is becoming of paramount importance in the prevailing Economic climate. As such, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such advice, assistance, and guidance, assistance, and in a professional and friendly manner. 🤔

02/04/2026

It is that time of the year again as we head into Easter and the Team at P & J Financial Solutions, would like to take this opportunity to wish all of our Clients, Business Colleagues and Partners, and Families an amazing and wonderful Easter Holiday period. Celebrate in the way that is appropriate for you. Eat lots of Chocolate and Hot-Cross Buns, stay safe, and enjoy the Easter Bunny. HAPPY EASTER. 🐣 🍫 🐣