Buckle up: the RBA is set to lead the world on rate rises

The Reserve Bank of Australia looks set to be the first major central bank to pivot to interest rate increases after inflation accelerated in the past few months, catching policymakers off guard.

RBA governor Michele Bullock surprised everyone last week, leaving the cash rate on hold at 3.6 per cent and suggesting that borrowing costs could head higher in 2026 rather than down if prices of goods and services continued to climb.

Source: https://www.afr.com/markets/debt-markets/buckle-up-the-rba-is-set-to-lead-the-world-on-rate-hikes-20251212-p5nn2l