The bank now expects the next cut to come in February 2026, in a blow for mortgage-holders.

In the past eight days, three of the major banks have changed their economic forecasts on the cash rate, shifting the next anticipated RBA cut from November to next year.

ANZ and Commonwealth both expect the cut to come in February, while the NAB anticipates a wait until May.

All three banks expect just one more cut in the cycle.

Westpac is still forecasting cuts in November, February, and May, but its economics team said a November cut was “far from assured”.

The growing uncertainty around a further cut this year has prompted a warning to borrowers to be on the lookout for a competitive rate.

“Households waiting for the RBA to swoop in with a cut could be waiting a while. If you want to get ahead on your mortgage, take matters into your own hands by shopping around for a sharper rate,” Canstar data insights director Sally Tindall said.

“Owner-occupiers paying down their debt might be able to pick up a deal under 5.25 per cent, while investors can aim for under 5.5 per cent, particularly if they’re willing to pay both principal and interest. If you’re paying significantly more, it’s time to take action.”

She said cashback deals, while not as “abundant” as they were at their 2023 peak, were still available from multiple lenders.

And frequent flyer points were also being offered with loans from multiple banks.

“However, with any upfront sweetener, borrowers should remember, free flights and cold hard cash might sound appealing, but the real savings typically come from securing a low interest rate, particularly on larger loans and especially if you’re unlikely to refinance regularly,” Tindall said.