Hopes of a pre-Christmas rates cut are off the table according to experts, with further relief next year also now unlikely.
All experts interviewed by comparison site Finder expected that the Reserve Bank of Australia (RBA) will bold the cash rate on Tuesday, keeping it at 3.6 per cent.
Meanwhile three of the major four banks are forecasting there will be no cuts in early 2026.
"With inflation starting to get away from the RBA, the board appears committed to steady rates for now," Graham Cooke, head of consumer research at Finder said.
"Any festive rate cuts are firmly off the table, and borrowers will need to prepare for a cautious start to 2026 rather than a sudden reprieve."
There are a total of 35 on the panel of Finder experts, including economists and analysts across the housing sector.
Current economic conditions point to a hold for the last RBA decision on the cash rate of 2025.
"I think the RBA will stay on hold. Inflation has lifted gain and unemployment is still ow, so they need more evidence that price pressures are easing before considering rate cuts," said LJ Hooker head of research Mathew Tiller.
Mortgage holders have seen some relief in 2025 with three cuts in the cash rate by the RBA this year in February, May and August.
Most recently it was held steady at the November meeting.
The RBA next meets on interest rates in February, however there are some strong expectations that rates could go up next year.
Changing tune
ANZ bank is the latest of the big four banks to forecast no rate cuts in "the first half of 2026".
"We no longer see one final rate cut from the RBA in the first half of 2026, given recent inflation pressure," Adam Boynton, ANZ head of Australian economics said in an update.
"With growth around potential, the activity case for further easing is also less clear."
ANZ had previously forecast the RBA would cut the cash rate sometime in early to mid 2026. taking the cash rate to 3.35 per cent.
CBA and NAB have also forecast for no rate cuts in 2026.
Only Westpac has forecast two rate cuts in 2026, in May and August, taking the cash rate to 3.10 per cent.
'Next move may be a hike'
Economists interviewed by Canstar were divided on where rates will land in the new year.
Half of the experts surveyed believed we've hit the bottom of the rate cutting cycle for now.
"Because the data shows an economy that's steady but not strong, and inflation is still above target there's no case to cut but also no case to hike so the RBA will stay put," said Stella Huangfu of the University of Sydney.
However some believe a rate hike may even be on its way.
"The surprise increase in inflation in the latest CPI data appears to have ended any hopes of further rate cuts in the cycle," said Laing + Simmons CEO Leanne Pilkington.
"The high cost of housing continues to have a major impact and the next rate move may be a hike.
"Most people, mortgage holders especially, will hope this is some way off."
