Reserve Bank holds rates steady as market expectations shift for hikes in 2026

Reserve Bank governor Michele Bullock has flagged the RBA would potentially look at hiking interest rates ‘at some point next year’.

Two months ago markets were sure the RBA would cut rates by Christmas and again in 2026. Now they’re betting on hikes, possibly as soon as February.

That’s all from The Australian’s rolling coverage of business and markets news for Tuesday, December 9.

The ASX 200 closed down 0.5 per cent at 8585.9 points - its lowest daily close in five days - after the RBA warned that it might need to lift interest rates “at some point next year.”

Originally published as Reserve Bank holds rates steady as market expectations shift for hikes in 2026