.jpg)
RBA maintains interest rates at 4.35%, citing softer October inflation data. Borrowers get a reprieve ahead of holidays, with further rate changes paused until February.
Australia's Reserve Bank (RBA) has announced its decision to maintain interest rates at 4.35%, providing a reprieve for borrowers ahead of the holiday season. This decision follows a November rate hike, with the RBA attributing its choice to softer-than-expected monthly inflation data for October.
Governor Michele Bullock, in her post-meeting statement, highlighted that the limited information available since the November meeting aligned with expectations. Notably, October's inflation figures predominantly covered goods rather than services, the latter being a primary concern for the central bank. Bullock emphasised the need for additional data before making further adjustments.
Borrowers can expect a hiatus in rate changes until at least February, as the RBA's board is not scheduled to meet in January. Since May 2022, interest rates have surged by 4.25 percentage points, resulting in a monthly increase of over $1,200 for those with a $500,000 home loan and 25 years left on the term. Luci Ellis, Westpac's chief economist, suggested the possibility of a downward rate adjustment, citing various data points indicating the Reserve Bank may not need to tighten policy further.
The RBA remains vigilant, acknowledging uncertainties regarding monetary policy lags, firms' pricing decisions, and wages responding to slower economic growth. Household consumption remains a variable, with some facing financial constraints while others benefit from rising housing prices.
Despite uncertainties, the RBA is committed to bringing inflation back to its target range of 2% to 3%. Economists, however, differ in their views on future rate movements, with some anticipating another hike early next year and others foreseeing the potential for a downward adjustment.
In summary, the RBA's decision to keep rates steady reflects a cautious stance in light of economic uncertainties. While borrowers may experience temporary relief, the potential for future rate adjustments hinges on evolving economic data, particularly in the realms of inflation and labour market trends. The central bank remains resolute in its commitment to achieving its inflation target, closely monitoring global economic developments and domestic factors influencing inflation, demand, and the labour market.
Global markets remained volatile as rising oil prices, inflation concerns and shifting rate expectations continued to impact investor sentiment. In this update, Tyson Roberts explores the latest developments affecting global markets, the Australian economy and the property sector. The article also highlights how ongoing uncertainty and AI-driven market momentum are shaping investment outlooks moving forward.
The 2026–27 Federal Budget is set to reshape Australia’s property market, with major changes to negative gearing and capital gains tax rules. In this article, Matt Damos explains what these reforms could mean for investors, first home buyers and future property strategies. The changes aim to encourage investment in new housing supply while easing competition for existing homes. Discover how the new rules may affect your plans to buy, invest or sell property in the years ahead.
Market volatility can have a bigger impact in retirement, making a reliable income strategy more important than ever. In this article, Paul Antos explores retirement income options including account-based pensions, annuities and blended strategies. He also explains how the Age Pension can provide added stability during uncertain times. Discover practical ways to help protect your retirement income and maintain confidence through changing markets.
Stay in the know with the latest updates, insights, and exclusive content delivered straight to your inbox.
