The final RBA decision for 2025 is in — and while the cash rate stayed on hold, the message behind today’s announcement was anything but comforting.
In this month’s LIVE RBA & Economic Update, Ben Kingsley and economist Evan Lucas broke down what the hold means, why inflation is still proving stubborn, and what households should prepare for as we head into 2026.
The RBA Hits Pause — But Signals They’re ‘Live’ Both Ways
No change to the cash rate… but the RBA’s wording made it clear they’re watching inflation risks closely and won’t hesitate to move rates again if necessary.
A lot of the price pressures we’re seeing aren’t coming from typical household spending — they’re coming from areas interest rates cannot fix, like government-regulated sectors, new housing costs, and energy.
When inflation is being driven by those forces, the RBA has fewer tools left… which is why their language matters so much.
Energy Costs Are Still Running Hot
One of the biggest takeaways of the whole update: Energy remains a major pressure point for Aussie households.
Rebates temporarily softened the blow this year, but once they roll off in 2026, the true cost rises will hit home again.
For your financial plan, this means two things:
✔ Your cost-of-living outlook needs to factor in higher utilities
✔ Your buffers matter more than ever
Inside Moorr, now is a great time to check that MoneySMARTS is fully up-to-date and your surplus is still protected.
GDP Up, Productivity Down — And Households Feel It
Australia is still posting positive GDP growth on paper… but real living standards aren’t improving.
Per-capita GDP is still negative.
Productivity is barely moving.
Regulation is pushing costs higher across the economy.
This is why so many people feel like they’re running just to stand still.
If your money feels tighter than it should, it’s not your imagination — the macro settings are making everything harder. This is exactly where the clarity inside Moorr (your cash flow, your buffers, your future projections) becomes essential.
Inflation Breakdown: What You Can Control
A huge part of current inflation is coming from:
- Housing and rent
- Health
- Education
- Government-regulated services
These aren’t easily reduced by changing your day-to-day spending.
So instead of trying to “budget your way out of inflation,” focus on the levers you can pull:
✔ Track your spending
✔ Protect your surplus
✔ Review your loan
✔ Strengthen your emergency buffer
Moorr gives you visibility on all of these — use it to stay ahead of the noise.
Consumers Are Weirdly Optimistic… Except Mortgage Holders
Consumer sentiment jumped sharply this month, mostly driven by people without a mortgage.
Those carrying a loan, however, remain much more cautious — and with energy, regulation and housing still pushing prices up, that makes sense.
If you’re in the mortgage belt, now is a great time to check your loan rate and make sure you’re not overpaying. You can connect with Empower Wealth’s award-winning Mortgage Broking team directly through the “Professional Services” tab in Moorr.
Whether rates move or stay on hold next year, knowing your cash flow, buffers and borrowing position puts you in the strongest possible place to make decisions confidently.
