The Reserve Bank of Australia has maintained its holding pattern, keeping the official cash rate steady at 4.35% during its November meeting – marking the eighth consecutive month without change as the battle against inflation continues.
No Relief for Mortgage Holders Until 2026
Australian homeowners hoping for rate relief will need to wait longer, with economists now predicting the first rate cut won't arrive until 2026. The extended timeline reflects the RBA's ongoing concerns about stubborn inflation that continues to linger above the bank's target range.
"The Board remains resolute in its determination to return inflation to target," stated RBA Governor Philip Lowe following the decision. "We've made good progress, but the job isn't done yet."
Economic Outlook Remains Cautious
The central bank's cautious approach comes amid mixed economic signals. While inflation has moderated from its peak, key sectors including services and housing continue to show persistent price pressures that concern policymakers.
Recent economic data reveals:
- Inflation remains above the 2-3% target band
- Consumer spending continues to slow
- Employment figures remain relatively strong
- Global economic uncertainty persists
What This Means for Australian Households
For the average Australian homeowner with a $750,000 mortgage, the extended pause means continuing to budget for monthly repayments that have increased by approximately $1,800 since rates began climbing in May 2022. Financial advisors are urging households to maintain conservative budgeting practices through the extended high-rate environment.
The RBA's next meeting in December will be closely watched for any shift in tone or updated economic projections that might signal when relief could finally arrive for Australian borrowers.
