The RBA’s decision to hold the cash rate at 4.35% has given brokers, borrowers and small business owners a clearer window to reassess their financial position. While the hold provides some stability after three consecutive rate increases between February and May, industry leaders warned that uncertainty remains, with interbank futures pricing pointing to a 60% probability of a further rise by March 2027 and rate cuts not expected before the second half of 2027 at the earliest.
Prospa featured in the discussion through its small business lending insights. Roberto Sanz, Prospa’s General Manager of Sales and Partnerships, pointed to YouGov research commissioned by Prospa showing SME confidence in staying cashflow positive has fallen from 70% to 60% since February, with average cash reserves sitting at just 2.6 months. He said the steady rate gives brokers a reason to check in with clients now, help them reassess their position and put the right funding options on the table before they are needed.
