Financial markets now certain the RBA will hike interest rates in 2026

The GuardianFriday, December 5, 2025 at 2:00:28 PM
Financial markets now certain the RBA will hike interest rates in 2026
  • Financial markets are now anticipating a 100% probability that the Reserve Bank of Australia (RBA) will increase interest rates in 2026, a shift prompted by recent inflation data. This change in outlook marks a significant reversal from earlier expectations that suggested a potential rate cut by May 2026.
  • The anticipated rate hike could adversely affect mortgage holders, increasing their financial burden amid a backdrop of rising living costs. This decision by the RBA is crucial as it may also temper the currently heated property market, which has been experiencing rapid price increases.
  • This development reflects broader economic concerns, including declining consumer confidence in the US, where falling stock markets and high prices have led to a decrease in spending. Such trends may resonate in Australia, where inflationary pressures and economic uncertainty are prompting discussions about the sustainability of current financial practices.
— via World Pulse Now AI Editorial System

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