RBA Announces Interest Rates Decision Live
The Reserve Bank of Australia (RBA) is set to announce its cash rate decision, impacting borrowers and savers significantly. This announcement follows a surge in inflation that has exceeded market expectations, raising concerns about interest rate adjustments.
Current Inflation Data
Recent statistics from the Australian Bureau of Statistics indicate a notable rise in the Consumer Price Index (CPI). The CPI increased by 3.8% for the year ending December, compared to a 3.4% rise in November. This acceleration in inflation is expected to prompt a tightening monetary policy.
Monthly Inflation Trends
| Month | Headline CPI (%) | Trimmed Mean (%) |
|---|---|---|
| December 2025 | 3.8 | 3.3 |
| November 2025 | 3.4 | 3.2 |
| October 2025 | 3.8 | 3.3 |
| September 2025 | 3.6 | 3.2 |
| August 2025 | 3.2 | 3.0 |
| July 2025 | 3.0 | 3.0 |
Market Expectations for an Interest Rate Hike
As of now, the Australian Stock Exchange shows a 72% chance of an interest rate rise. This reflects significant changes in market sentiment following strong labour market data. The unemployment rate dropped to 4.2%, which has contributed to increased expectations of a rate hike.
Historical Context of Interest Rates
This meeting marks the RBA’s first cash rate decision of 2026. It has been almost 12 months since the RBA last cut rates after several years of stability. The last increase occurred in November 2023, elevating the cash rate to 4.35%, the highest in 13 years.
In 2025, the RBA adopted a cautious approach, alternating between rate cuts and holds to achieve a gradual easing of monetary policy. This strategy aimed to manage inflation without triggering a recession. However, unforeseen inflationary pressures emerged in October, complicating the RBA’s forecasts.
Looking Ahead
Anticipation grows as Michele Bullock prepares to present the cash rate decision. Analysts predict that, due to persistent inflation and a resilient economy, an increase in rates is likely. Borrowers should brace for more expensive loans, as the possibility of lower borrowing costs diminishes under current economic conditions.
Stay tuned for updates and insights from industry experts as the RBA’s decision unfolds. For more details and follow-up information, visit Filmogaz.com.
