No interest rate relief ahead of Christmas 2025

Although the likelihood of a further rate cut has diminished, KPMG still believes that there may be an opportunity for the RBA to cut rates further in the first half of 2026, writes KPMG Chief Economist Brendan Rynne.

The Reserve Bank of Australia (RBA) has kept the cash rate on hold, dashing any glimmer of hope of Christmas rate relief. While it might not be the news mortgage holders were looking for, the RBA was right in holding off on any change to the cash rate, be that up or down. We believe the RBA should not hike rates early in the new year but instead continue to wait for the next few months to better understand whether the recent rises in inflation are the start of an upward trend or a temporary...

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Authors: Brendan Rynne

Published Date: 10 December 2025