Reserve Bank faces rate hike pressure as market expectations dramatically shift

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.

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.

Welcome to The Australian’s rolling coverage of business and markets news for Tuesday, December 9.

The ASX 200 index is down 0.1 per cent to 8618 points at 12.10pm AEDT before the RBA’s interest rate decision this afternoon. US stocks fell before the US Federal Reserve’s expected rate cut.

Originally published as Reserve Bank faces rate hike pressure as market expectations dramatically shift