RBA keeps rates on hold with no rate cuts until 2026

At the November board meeting the Reserve Bank of Australia (RBA) has kept the official cash rate on hold – dashing hopes for a Cup Day rate cut.

Following on from the November meeting the RBA basically ruled out any further change to the cash rate in 2025, meaning mortgage holders will need to wait until 2026 for any potential rate cuts.

The RBA has indicated that the recent inflation figures and employment data are he basis for them keeping the official cash rate on hold.

Inflation data came in hotter than expected in the September quarter, with consumer prices rising 3% year-on-year. Following the 29 October inflation print, the RBA rate Tracker increased the odds of a hold from 61% to 93%.

Economic forecasters accurately predicted a more “hawkish tone” from the RBA today, in order to prevent a further resurgence in price growth.

Despite unemployment rising to 4.5%, forecasters noted that the labour market remains “slightly tight”, making a rate reduction improbable without a broader cooling in demand.

For now, it appears rates are on hold for the remainder of 2025.

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.

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.