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Mortgage holders’ hopes for a Christmas cut to interest rates appear dashed.. (Getty Images\/iStockphoto)<\/p>\nM\ufeffortgage holders hoping for a Christmas miracle will be left disappointed next week when the Reserve Bank of Australia (RBA) hands down its decision on interest rates, according to new research.<\/p>\n
The unanimous verdict of 35 financial experts in a survey by financial comparison site Finder was the RBA will keep the cash rate at 3.6 per cent next Tuesday.<\/p>\n
\ufeffWhile 33 of them backed the central bank’s expected no change policy to rates, two believed they should be lifted.<\/p>\n
Mortgage holders’ hopes for a Christmas cut to interest rates appear dashed.. (Getty Images\/iStockphoto)<\/p>\n
Finder head of consumer research Graham Cooke says the clear message for mortgage holders is don’t expect any relief soon.<\/p>\n
“A hold is still a better outcome than an end-of-year hike, which was being suggested by some analysts \u2013 and would have added extra pressure to already stretched household budgets,” he said.<\/p>\n
“With inflation starting to get away from the RBA, the board appears committed to steady rates for now. <\/p>\n
“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.”<\/p>\n
The final nail in the coffin for hopes of a cut came last month when data from the Australian Bureau of Statistics showed the country’s annual inflation rate rose to 3.8 per cent in the 12 months to October.<\/p>\n
The trimmed mean \u2013 the Reserve Bank of Australia’s preferred measure of underlying inflation \u2013\ufeff also rose, up from 3.2 to 3.3 per cent.<\/p>\n
Maintaining interest rates at their current level will also impact pre-Christmas spending, according to Finder.<\/p>\n
Research shows one in three mortgage holders would have enjoyed a more indulgent Christmas with a lower cash rate.<\/p>\n
From those surveyed, 55 per cent had even been planning how they’d spend extra cash if rates continued to fall by splashing out on travel, home renovations and shopping for clothes and shoes.<\/p>\n
The outlook for potential rates cuts next year remains a mixed picture.<\/p>\n
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Mortgage holders are likely to cut back pre-Christmas spending without a cut to interest rates, new research found.. (AFR\/Natalie Boog) (Nine)<\/p>\n
Half of the 28 experts surveyed believe Australia has hit the bottom of the easing cycle, while the other half say there’s still room for rates to fall.<\/p>\n
Many highlighted one lingering factor: the stubborn level of inflation\ufeff will loom large over the RBA’s cash rate strategy over next year.<\/p>\n
More than a third of experts say October’s inflation data has “definitely” raised the likelihood of a rate hike within the next six months, while 34 per cent believe it will have little impact.<\/p>\n