The Reserve Bank of Australia keeps interest rates unchanged as expected, with the market anticipating the easing cycle may have ended.

Jinse Finance reported that the Reserve Bank of Australia failed to deliver an early Christmas “gift” to mortgage holders, keeping interest rates unchanged at its final meeting of the year. In a widely expected and unanimously approved decision on Tuesday, the Monetary Policy Committee maintained the cash rate at 3.6%. Inflation is expected to rebound in the second half of 2025, shattering market hopes for further rate cuts. Since February this year, the Reserve Bank of Australia has already cut rates by a total of 75 basis points. The interest rate market and most economists now believe that the RBA’s easing cycle has ended. Some analysts point out that if inflationary pressures continue to rise, the central bank may be forced to raise rates as early as February next year. Domain Chief Economist Nicola Powell stated that the reversal in rate expectations could help ease the pressure from the rapid rise in housing market prices over the past year. (Golden Ten Data)