RBA holds but odds swing towards a hike before a cut in 2026
Recent expectations of an end-of-year rate cut were extinguished by the RBA but borrowers may want to brace for an uptick in repayments in 2026.
Three rate cuts in 2025 helped borrowers but fuelled strong property price growth. (Image source: Sommart Sombutwanitkul/Shutterstock.com)
After three rate cuts in a year, 2025 ended with a monetary policy whimper as the Reserve Bank of Australia (RBA) surprised nobody by keeping interest rates on hold.
Tuesday’s (9 December) final RBA board meeting of the year kept the official cash rate at 3.60 per cent.
Speculation around another rate cut, however, has been clouded by higher inflation that could feasibly mean the next interest rate move is upwards.
Indeed, financial markets no…
