Interest Rates on Hold: What This Means for Buying & Selling Businesses in Australia
When the Reserve Bank of Australia (RBA) held its cash rate at 3.60% in November 2025, it sent a clear signal to the business-sales market: the cost of money is stable for now, but the next leg of movement may be delayed.
For business brokers, buyers and sellers alike, this “pause” matters — not just for borrowing costs, but for how deals are structured, valuations are assessed and risk is managed. Here’s a breakdown of what the rate decision means for your next transaction.
What the RBA Decision Really Tells Us
The cash rate remains at 3.60%, unchanged since August 2025.
Inflation, especially the RBA’s preferred “trimmed mean” measure, is back above the 2-3 % target band — the Bank now expects inflation will stay elevated for the coming year.
The labour market remains tight and consumer demand moderate, meaning cost pressures could persist.
The message is cautious: future cuts are not guaranteed — indeed, some economists believe the current rate may be the bottom of this cycle.
Implications for Business Sales
For Sellers
A stable interest-rate environment means potential buyers won’t face immediate pressure from rising borrowing costs — that’s constructive.
But because inflation risks remain, deals may be slower to finalise as buyers demand more clarity on earnings quality, cost of inputs and margin stability.
This is a good time to show sustainability of revenue, demonstrate cost discipline and show you’re insulated from inflation-shock.
If you’re marketing now, emphasise that interest rates are “held for now” — but buyers should still be stress-testing future rate/funding scenarios to be safe.
For Buyers
Borrowing costs remain predictable for now, which helps modelling cash flows and determining serviceability.
However — because the RBA could delay cuts or hold rates higher for longer — it’s prudent to assume no further rate relief for 6-12 months.
When valuing a business, apply conservative debt servicing buffers, consider sensitivities (e.g., 100-200 basis points up in cost of funds) and build in contingency for inflation-driven input cost risk.
Strong businesses with recurring revenue, predictable costs and cost-control will stand out more in this environment.
Actionable Steps For Your Next Deal
For Sellers: prepare a “stress-tested” model: show buyer what revenue and profit look like if cost of funds rises or input inflation rises.
For Buyers: when running due diligence, go beyond standard P&L — look at cost-inflation exposure (materials, wages, energy), locked-in customer contracts, and how sensitive the business is to rate rises (via borrowing or working capital).
Across Both: incorporate interest-rate scenario analysis — assume current rate + 100 bps, +200 bps for 12 months — see how the business cash-flows.
Messaging: if you’re a broker marketing a business — emphasise that we are in a “stable borrowing environment for now” but wise buyers are preparing for a more cautious horizon.
Bottom Line
The RBA’s decision to hold rates at 3.60% offers a breathing point for dealmakers. It removes one variable — immediate rate hikes — from the equation. But it doesn’t mean the headwinds are gone. Inflation pressure, cost escalation and uncertainty around the next move in rates mean buyers and sellers should be vigilant.
For sellers, this means reinforcing stability, control, and resilience in the business story.
For buyers, it means performing deeper risk-scans, assuming less favourable rate/funding environments and favouring businesses with strong earnings quality and cost discipline.
The window is open to transact — but with rigor and realism.