09/12/2025
On its last meeting for 2025, the RBA left the official cash rate unchanged at 3.6%. Although inflation has eased in the beginning of the year, it has picked up again recently. The Bank judged it appropriate to remain patient by holding rates steady for now, while observing how the full effect of earlier rate moves feed through the economy.
For 2026, The RBA expects inflation to stay above 3% for much of 2026, before gradually returning toward the target band. Some analysts now expect the RBA may hold rates for an extended period or at least delay cuts until mid-2026. RBA also mentioned that any return to rate cuts would be considered only if inflation and other economic indicators show clear signs of easing.
