RBA Holds Rates in December

The Reserve Bank of Australia (RBA) has wrapped up 2025 by keeping the cash rate steady at 3.60%. While this decision was widely expected, the RBA signaled that inflation remains a concern and rate cuts are unlikely in the near term.

With sticky services inflation, strong wage growth, and global uncertainty, the RBA has also indicated that further tightening could happen in 2026 if economic data calls for it.

What This Means for Property Investors:

• Repayments remain high: Variable loan holders will continue to manage elevated monthly repayments.

• Borrowing capacity is capped: Higher rates limit how much investors can borrow, affecting buying power.

• Rental markets stay strong: Low vacancy rates mean rental yields continue to offset holding costs in many areas.

• Looking ahead to 2026: Early rate cuts are now unlikely. Future adjustments will depend on inflation, wage growth, and economic trends.

Key Data to Watch This Summer:

• Q4 inflation (January)

• Labour market trends and wage growth

• Consumer spending over the holiday season

Urban Money Tip:
The start of a new year is the perfect time to reassess your investment strategy. Whether you’re considering refinancing, leveraging equity, or expanding your portfolio in 2026, being proactive can give you an advantage.

? Book a chat with our lending experts today: 0363 317 539 — we’re here to help you make smart moves.

Disclaimer: This article is general in nature and does not constitute financial or investment advice. We recommend speaking with a licensed financial advisor or mortgage broker for guidance tailored to your situation.