The Reserve Bank of Australia (RBA) has announced it will keep the official cash rate on hold for the next few months, maintaining it at 3.60 per cent for December and January.

This marks the third consecutive month without a rate change—and the first time in a year that the cash rate has remained steady across more than two consecutive decisions. The last instance of such stability was in 2024, when the rate was held at 4.35 per cent throughout the year.

The decision was widely expected, with all four major bank economists and 97 per cent of the market forecasting no change from the central bank this month.

Analysts pointed to persistent inflation pressures, a balanced (though not tight) labour market, and steady GDP growth as key factors influencing the RBA’s decision to stay the course.

Economists also highlighted that the cash rate has already been cut by 75 basis points this year, marking the first easing cycle in five years.

Ahead of the meeting, Finsure CEO Simon Bednar said there was “absolute zero chance of a move by the RBA at this month’s meeting.”

“The best news for mortgage customers next year could be the RBA keeping official rates in an extended holding pattern,” he said. However, he also cautioned about “headwinds into 2026,” suggesting it remains “questionable if we’ll see any relief in the near future.”

Reacting to the decision, Mark Haron, executive director at Connective, said: “The hold today offers a degree of stability heading into 2026, but it does not change the ‘higher for longer’ rate environment. Inflation remains sticky, and the RBA has not seen enough progress to shift its stance.”

Rick Maggi, Financial Advisor (Perth), Westmount Financial