RBA Interest Rates: Economists Predict Two Increases by 2026

The Reserve Bank of Australia is expected to implement two interest rate hikes next year, admitting it may have previously cut rates too quickly. Independent economist Saul Eslake revised his prediction from a rate cut to potential increases after Governor Michele Bullock’s press conference. Inflation has risen to 3.8%, exceeding the RBA’s target, prompting the market to anticipate hikes in May and November, which would increase the cash rate to 4.1%. Despite this, major banks believe rates will remain steady throughout 2026, with some, like NAB, suggesting a possible hike in February.