RBA Holds Cash Rate at 3.60% – What It Means for Buyers and Homeowners
The Reserve Bank of Australia has ended the year by holding the cash rate steady at 3.60%, marking the third consecutive month without a change. While the pause offers short-term stability for borrowers, the RBA made it clear that inflation remains too high, and future rate increases are still on the table.
Recent data shows inflation sitting at 3.8%, with underlying inflation around 3.3%—both above the RBA’s target range of 2–3%. Stronger-than-expected household spending and continued pressure in the labour market have also contributed to the RBA’s cautious stance.
What This Means for the Property Market
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Mortgage holders won’t see relief just yet—repayments remain unchanged for now.
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With the RBA signalling that rate cuts are unlikely in the near future, buyers should plan for borrowing costs to stay where they are or even rise in 2026.
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Sellers may benefit from continued buyer activity, as many house-hunters try to purchase before any potential rate rise.
Looking Ahead
Economists are now predicting that the next rate move may be up rather than down, depending on how inflation tracks into early 2026. The RBA remains firmly “data-dependent,” making each meeting crucial for property market watchers.
For anyone considering buying, selling, or refinancing, now is a good time to check your borrowing position and stay informed as we head into a potentially shifting market