Australia’s latest November 2025 inflation data has surprised to the upside, prompting several major banks to warn that the Reserve Bank of Australia (RBA) may be forced to raise interest rates again. The development has reignited debate over whether the easing cycle is truly over.
Why inflation matters
Recent figures show inflation remains higher than expected, particularly across services, housing-related costs and everyday essentials. These pressures complicate the RBA’s efforts to bring inflation back within its target range.
What the banks are saying
Several major banks now believe the RBA may need to lift the cash rate again if inflation does not cool further. Some economists warn that renewed rate hikes could arrive sooner than markets expect, placing pressure on borrowers who are already managing higher repayments.
What this means for borrowers
If rates rise again, variable rate borrowers may see repayments increase, while fixed rate options could become more attractive for those seeking certainty. For others, it may highlight the importance of reviewing loan structures and cash flow buffers.
Our advice
In a changing rate environment, proactive planning is essential. Understanding how your loan is structured, whether your rate remains competitive, and how potential rate changes could impact your budget can help reduce uncertainty. Contact us now to discuss your loan.
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