Affordable equipment finance rates may be sourced following the RBA rate rise through specialist non-bank lenders accessible through finance brokers. The Reserve Bank Monetary Policy Board decided to increase the cash rate from 3.85% to 4.1% at its 17 March meeting. The impact on fuel prices domestically as a result of the Middle East fuelled the domestic inflation rate even further. But the major concern for the Board is Australia’s rate of inflation and the cash rate is the only tool available to the RBA to manage inflationary pressures.
An RBA rate rise decision is always going to attract more interest than a hold. The impacts and flow-on effects can be significant and affect both businesses and households. But with rates looking like they were on the downward trend in mid-late 2025, these two recent increases may feel like they’ve come out of nowhere.
Business owners trying to schedule asset acquisitions as the new financial year approaches, will understandably want to know what’s happening now and what could happen in the months ahead. Are affordable asset loan rates available? Where can they be found? Should they hold off acquiring new assets until rates are cut?
The March RBA decision attracted a lot of attention and there is plenty to unpack from the detail. We provide a summary of the key points with information for business owners seeking new finance for asset purchases.
Why the RBA Increased Interest Rates
The RBA Board announced an increase of 0.25% to Australia’s official cash rate on 17 March. Lifting the rate from 3.85% to 4.1%. This follows the 0.25% hike in February. Another rate hike this year was widely expected by economists, though some were expecting the announcement in May. But the Board voted – 5 for a rise, 4 for a hold, to lift the rate in March.
Australians seeing petrol prices surge since the Middle East conflict started may think this is the main reason for the Board’s decision. But it is only one of the contributing factors. Months before that started, Australia was already recording spikes in the rate of inflation. As Michele Bullock, the Governor of the Reserve Bank, explained, the inflation rate was too high even before fuel prices started rising.
The uncertainties around the Middle East situation are a major concern. But if the Board failed to address rising inflation, the situation could worsen and be more difficult to control at a later time. The spike in oil prices stoked fears of a further uplift in inflation with a flow-on effect expected in food costs, transport and many other sectors.
The February decision was unanimous by the Board. Raising questions around the March split decision. Ms Bullock explained the difference between the two views was in the timing of when the next rate rise should occur. The Board was unanimous on the direction that rates should go in response to rising inflation. Some Board members wanting more time to see how the conditions played out.
How long the Middle East conflict continues, especially the disruptions to oil supplies and shipping, may be highly significant to global economic conditions. Ms Bullock said that with inflation rising and with the current scenario, there was a real risk that the rate of inflation could stay above the RBA’s target for a longer time than the Board had anticipated previously.
The next data set on inflation is released from the ABS on 25 March and will provide further information for the RBA Board prior to their 5 May rate decision meeting. Business owners can also look to the Federal Budget, due to be brought down on 12 May, to assess the outlook for their industry sector.
Outcomes for Equipment Finance Rates
The market trend is for lenders across all lending sectors to change their rates following RBA cash rate decisions. But the asset finance market is diverse and variations in fixed rates for Lease, Chattel Mortgage, Rent-to-Own and CHP will still be found.
Existing fixed rate finance arrangements will not see any change. Variable rate credit facilities such as Business Overdrafts and Unsecured Business Loans will likely see a rate rise. Business owners can speak with one of our brokers about the prospects of refinancing through a different lender for a better rate on their variable rate loans.
Securing Affordable Equipment Finance Rates
As under in market scenarios, asset finance rates do vary across the lending sector. With our access to many lenders, we continue to be competitive in securing the best possible rate to suit their profile and objectives.
Business owners can work with our brokers to find their best rates and obtain expert advice and assistance on structuring the loan to achieve workable payments. Options may include considering a deposit rather than borrowing 100% of the equipment price, as is the usual practice for many operators. The lower loan to value ratio may result in a better rate offer.
Our brokers will negotiate with our lenders on securing terms and balloons that deliver a repayment level that does work with cash flow. To start planning, use our calculator and our latest rates to establish your preferences.
To secure affordable equipment finance rates in wake of the March RBA rate increase, contact Jade Equipment Finance 1300 000 003.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
