RBA Decision: 9 December 2025
Cash Rate Held at 3.60%
The Reserve Bank has kept rates steady for the final meeting of 2025, but a “hawkish” shift suggests that rate cuts are not on the horizon for the foreseeable future.
The Economy at a Glance (December Update)
Official Cash Rate Tracker
Following three cuts earlier in the year, the RBA has held steady at 3.60% for the last quarter of 2025 as inflationary pressures resurface.
Why the RBA Held Rates in December
What This Means for Your Finances
For Mortgage Holders
The prospect of further rate cuts has been pushed back. Borrowers should plan for rates to stay at these levels well into 2026. Reviewing your current rate is critical as lenders adjust their own margins.
Check My Rate →For Savers
With the “hawkish” hold and upside inflation risks, deposit rates may stay higher for longer. It remains a good environment for term deposits and high-interest savings accounts.
Property Market
Market resilience is surprising the RBA. Buyers should factor in the cost of debt remaining steady rather than falling, as the Board focuses on cooling demand to hit inflation targets.
Why This Hold Matters for 2026
The RBA’s stance has noticeably shifted. While earlier in the year the conversation was about how many cuts we would see, Governor Michele Bullock has now explicitly stated that rate cuts are not “on the horizon.”
With inflation tilting to the upside and private demand surging, the risk of a rate *increase* in 2026 has entered the discussion for the first time in months. For Lend A Loan clients, this means the “wait and see” strategy for refinancing may no longer be the best path—locking in a competitive rate now is more important than ever.
The Outlook: What to Watch
The RBA remains strictly “data-driven” but with a cautious eye on inflation risks.
- → Inflation Forecast: RBA now expects inflation to remain stickier, potentially staying above 3% longer than previously forecast.
- → Next Rate Move? The timeline for cuts has been pushed back. The central scenario is a hold through early-mid 2026.
In short: Prepare for “higher for longer.”
Key Takeaways from the RBA’s Statement
The final decision for 2025 leaves us with a clear message: the inflation fight isn’t over.
- Inflation has surprised on the upside, driven by services and domestic demand.
- The economy is running hotter than expected, with tight labour markets.
- The Board is not ruling out further hikes if inflation doesn’t cool.
- Rate cuts are off the table for the near term.
Key Implications For Your Finances
1. Refinancing
Banks are still competing, but fixed rates may start to creep up if global bond yields rise. Review your loan now to ensure you aren’t paying a “loyalty tax.”
2. Budgeting
Ensure your household budget can withstand rates at this level for another 12-18 months. Building a buffer now is better than waiting for relief.
3. Investing & Property
Stronger rents and capital growth are offsetting higher interest costs for some, but cash flow management is key. Don’t over-leverage assuming rates will fall soon.
4. Savers & Deposit Holders
Shop around. With the cash rate steady, you should be getting close to 5% on your savings. If not, it’s time to move your money.
Start 2026 with a better rate.
Don’t wait for rate cuts that might not come. Let a Lend A Loan expert review your situation and find a solution that works for you.
Or call us directly on 0488 220 222