Interest rates likely to be on hold or hiked in the next 12 months, says AMP | The Business

As expected, the Reserve Bank has kept the cash rate on hold until February.
But the RBA Governor says the board’s next move could be a rate rise if inflation doesn’t begin to ease back towards the target band.
Michele Bullock says there’s a lot of uncertainty about how that will play out, but more rate cuts are not on the horizon.
AMP deputy chief economist Diana Mousina joined The Business to explain where she thinks rates will head next year.
She says the RBA governor’s speech could be described as “hawkish” and “that’s likely to mean that interest rates are either going to be on hold or increased in the next 12 month.
Diana Mousina says in AMP’s view, the risks to the economy are to the downside in 2026.
“That hangs on this expectation that the labour market is likely to weaken a bit further, which then has implications for inflation,” she said.
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