If the cash rate were a person, it’d currently be curled up on the couch with a cuppa, refusing to move. That’s right — the Reserve Bank of Australia has kept the cash rate steady at 3.60% after its November meeting.
Why the chill vibes? Well, the RBA reckons things are already tight enough. Inflation is sitting at 3.2% and slowly inching toward the comfy 2–3% target zone. In RBA-speak, that means the current settings are doing their job — cooling things down without tipping the economy into a full-on sulk.
RBA Assistant Governor Christopher Kent recently explained that financial conditions have been “restrictive and restraining demand.” Translation: people have been tightening their belts. But there’s a plot twist — mortgage payments are easing and housing credit is starting to rise, thanks to earlier rate cuts. A small but promising sign that Australians might soon exhale just a little.
So for now, the RBA is taking the Goldilocks approach: not too hot, not too cold, just trying to guide the economy toward that elusive soft landing. There are encouraging signs, but also risks lurking both here and overseas — so the Bank is keeping one eye on inflation and the other on everything else.
Stay tuned. If the cash rate decides to get off the couch next month, you’ll hear it here first.
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