At the December board meeting the Reserve Bank of Australia (RBA) provided no early Christmas present to home owners and kept the official cash rate on hold.
The Reserve Bank of Australia (RBA) has announced that the official cash rate will remain on hold for the next couple of months, after keeping it steady at 3.60 per cent for December/January.
This marks the third consecutive month where the cash rate has not moved, and the first time in a year that the settings have been kept level for more than two rate decisions (the last time being in 2024 – when the cash rate was held at 4.35 per cent for the whole year).
The decision to hold the cash rate was widely anticipated, with the vast majority of major economists having forecast no movement from the central bank this month.
Commentators flagged the fact that there have been persistent inflation pressures, a balanced (not tight) labour market, and steady GDP growth, which they believed would stay the RBA’s hand.
Moreover, economists have noted that the cash rate has fallen by 75 basis points (bps) this year – and marked the first easing cycle for five years.
The rate hold offers a degree of stability heading into 2026, but it does not change the ‘higher for longer’ rate environment. Inflation remains sticky, and the RBA has obviously not seen enough progress to shift its stance.
You can still save on your home loan prior to the festive season
A free phone or web-based review of your home loan can take 5 minutes. With a fast application process like the LJ Hooker Home Loans Express REFI product you can potentially refinance before Christmas and enjoy savings over the festive period. A refinance can also help you access equity for things like home renovations, holidays, business needs, etc.
If you’re keen to switch and save, or just have a free home loan review, get in touch with one of our local specialists today. We can also offer free property market info to help with your equity assessment.
Understanding your options can start with a simple phone, web, or in person discussion.
We know loans like we know homes.
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.