Tightening countdown? The Reserve Bank of Australia is expected to remain on hold again this week, as renewed inflation ignites expectations of a rate hike in 2026.

According to the Wise Finance APP, the Reserve Bank of Australia will announce its latest interest rate decision on Tuesday. Economists predict that the Reserve Bank of Australia will maintain the cash rate at 3.6% for the third consecutive meeting, and market pricing of overnight index swaps also confirms this view. At the same time, traders and economists are closely watching for signs of a shift in the Reserve Bank of Australia's stance towards a more hawkish outlook, which could indicate a possibility of interest rate hikes next year. Due to renewed inflation pressure, resilient domestic demand, and a tight labor market, the swap market is betting that policy will tighten again in mid-2026. Therefore, market focus on the Reserve Bank of Australia's final meeting of the year will be on the tone of the meeting statement and the subsequent press conference by Reserve Bank Governor Michel Bullock.