Higher inflation for longer is likely to rule out any further rate cuts, with the Reserve Bank’s latest set of economic forecasts pointing to a pretty dour 18 months ahead.

The RBA monetary policy board surprised nobody on Melbourne Cup day when it held its cash rate target at 3.6%.

It was probably the safest bet in town after inflation came in far hotter than anticipated in the September quarter, which reset expectations for where it will go through 2026.

At Michele Bullock’s post-meeting press conference, attention naturally turned to one question: what’s next for Australia’s mortgage-stretched homeowners?.

But the central bank’s governor gave little sign that the RBA has any answers there, plumping for a post-match cliche that the board was taking it “meeting by meeting”.

Sign

See Full Page