Blog post by Empower Wealth

RBA Nov 2025 | Stagflation Risk Emerges as Confidence Drops

The Reserve Bank of Australia has just made its November 2025 cash rate announcement, and the decision lands amid a whirlwind of competing economic signals.

In this latest RBA and Economic Update, Empower Wealth’s Ben Kingsley and resident economist Evan Lucas dive deep into what’s really driving the headlines… from inflation and interest rates to housing market dynamics and the growing risk of stagflation.

If you’re trying to make sense of where the economy might go next, this episode is one to tune in to.

What Happened Today?

The RBA once again held the official cash rate at 3.60%. Following the latest CPI figures, this decision came as little surprise—but the bigger story is what’s shaping the RBA’s thinking moving forward.

What’s Going On With Inflation?

Despite earlier signs that inflation was cooling, the latest data showed a worrying spike. Energy costs are a key driver here, with oil price volatility and structural supply constraints pushing household bills and business overheads higher.

How Are Consumers Feeling?

The mood is shifting. Australians who were hoping for rate cuts by year’s end are now facing a more sobering reality. With unemployment trends and sticky inflation providing mixed signals, both households and businesses are growing more cautious.

The Housing Market Story

Despite rising prices in many markets, the underlying supply story remains bleak:

New housing approvals are tracking below decade-long averages
Rental inflation is accelerating due to regulatory pressure on landlords
Stock levels remain tight, pushing up prices and competition

In short: Australia’s housing crisis isn’t going anywhere fast. And while investor appetite may be rising, affordability and access remain major hurdles for many.

What to Watch Next

As we head into the final quarter of 2025, attention turns to:

End-of-year retail and holiday spending patterns
Shifts in business investment and confidence
Potential energy relief measures or policy changes

This data will be critical in shaping expectations for early 2026, and whether or not the RBA will stay the course.

Is It Time to Review Your Strategy?

In uncertain conditions, the best thing you can do is stay proactive. At Empower Wealth, we’re helping our clients stay focused on long-term goals, navigate the data calmly, and take action that’s aligned with their lifestyle plans.

Now is a great time to:
✔ Review your current loan and ensure your rate is still competitive
✔ Understand your borrowing power in this shifting environment
✔ Explore what a tailored strategy looks like for your next move — whether that’s upgrading the home, investing, or preparing for retirement

Our award-winning Mortgage Broking team and integrated service offering make it easy to get the right support—all in one place. Book a free, no-obligation consultation and get expert support from a team that puts your goals first.

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Categories: Mortgage Broking

Tags: Australian economy, Australian property market, Cash Rate, Current Interest Rates, Gross Domestic Product (GDP), Home Loan, Inflation, Interest Rate, Interest Rate Announcement, Monetary Policy, mortgage broking, Property Market, property prices, RBA, rba cash rate, RBA Rate, Reserve Bank of Australia (RBA), Unemployment