RBA holds the line at 3.85%: What this means for your 2026 strategy

The Reserve Bank just held the cash rate at 3.85%—a reflection of how stubborn inflation's been over the past six months. For most people, that's a signal to hit pause and wait it out.

But here's what the data actually tells us: this is when opportunity opens up.

We've studied the patterns. The months following rate decisions like this? That's when the most strategic moves get made. Owner-occupiers pull back. Sentiment cools. And suddenly, there's less competition for the high-performance assets that were getting snapped up just weeks earlier.

The past year was a time for shedding. For many of our clients, this meant stripping away the market noise, letting go of outdated interest rate anxieties, and shedding the "emotional bias" that often leads to poor property selection. In the Calla Property Insights framework, this "shedding" phase is where we de-risk—ensuring that fear is replaced by a clear, research-backed strategy.

At Calla Property, we don't react to headlines. We position around them. Because while others are waiting for the "perfect" moment, the investors who understand market cycles are already securing their next asset, often with better terms and stronger negotiating power than they'd get in a heated market.

The question isn't whether to act. It's whether you're looking at the right data to act strategically.

The Calla Analysis: Market Fundamentals

A "Stable-High" Outlook Rate cuts aren't coming in the first half of 2026. That might sound like bad news, but here's the upside: we finally have clarity. When the cash rate sits stable—even at an elevated level—it gives us a clear horizon to model cash flow accurately and plan long-term without second-guessing every month.

Supply vs. Demand Here's the foundation that holds through every rate cycle: Australia simply doesn't have enough housing. That under-supply is the real driver of value, not short-term rate movements. January's data backs this up as national property values rose 0.2%, underpinned by a resilient 4.1% unemployment rate. People still need somewhere to live. And that's not changing anytime soon.

Moving from 'Wait and See' to 'Strategic Action'

Here's what a stable-high rate environment actually does: it filters out the noise. The emotional buyers, the FOMO chasers, the ones who were stretching beyond their means, they step back. And that leaves room for serious investors to focus on what actually matters: location, infrastructure, and rental yields.

Our advice hasn't changed: don't let the headlines dictate your timeline. Wealth isn't built by timing the RBA perfectly. It's built by time in the market—buying the right asset, in the right location, and holding it through the cycles.

The question is whether you're waiting for permission, or positioning while others hesitate.

Make your move before the market does

Positioning isn’t luck — We help you align timing, strategy, and opportunity.

Do you have any questions? Call us at:

+61 407 465 850 | +61 482 080 189