Blog post by Empower Wealth

(LIVE) RBA Dec 2025 | Families Feeling the Pinch as Optimism Fades?

As 2025 draws to a close, Australia’s economic landscape remains anything but settled.

In the final RBA call of the year, the cash rate was held steady — but the tone of the statement made it clear that the Board is now “live” in both directions. That means rate cuts aren’t guaranteed… and neither are rate hikes off the table.

In this month’s LIVE RBA & Economic Update, our very own Ben Kingsley and resident economist Evan Lucas unpacked the decision, the shifting data, and what’s really driving inflation as we head into 2026.

What Happened Today?

The RBA chose to hold the cash rate, and December’s statement was short and direct. Inflation pressures have tilted to the upside, labour markets remain tight, and the Board will “do what it considers necessary” to deliver price stability.

This was a clear sign-off to 2025 — and a reminder that the next move is not predetermined.

What’s driving this uncertainty? According to Ben and Evan:

The spike in October inflation surprised markets and derailed the expectation of a December cut.
Most of the price pressures are coming from areas insulated from interest rates — especially those driven by government policy and regulation.
Fiscal policy (government spending and rebates) is now working against monetary policy, making the RBA’s job harder.

What This Means for You

With the RBA now explicitly signalling that rates could move either way in 2026, families and investors face a year where preparation will matter more than prediction.

This includes strengthening buffers, reviewing lending structures, and ensuring your property plans remain aligned with your long-term goals.

If you’d like support in reviewing your borrowing strategy or planning your next steps, our team at Empower Wealth is here to help.

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