RBA leaves cash rate target on hold at 3.6%
Luca Ittimani
The Reserve Bank has left its key interest rate on hold, as widely expected by economists. The official cash rate remains 3.6%.
Markets had predicted there would be no change, with traders betting the RBA would next hand down a rate hike by August 2026.
We’ll bring you more from the interest rate-setting board’s statement in just a moment.
The RBA has kept the official cash rate on hold at 3.6%. Photograph: Mark Baker/APShare
Updated at 22.35 EST
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The Reserve Bank governor, Michele Bullock, is speaking to reporters at a press conference in Sydney.
Speaking about the RBA’s decision to leave interest rates on hold at 3.6%, Bullock says the board did not consider the case for a rate cut:
There was no cut on the table and no one suggested that there be a cut.
Opposition claims RBA cash rate decision ‘tragic news’ ahead of Christmas
The shadow treasurer, Ted O’Brien, says the Reserve Bank of Australia’s decision to hold the cash rate is “tragic news for households” ahead of Christmas:
The government promised Australians the opposite of what they are delivering. Everybody is being held back, everybody is being left behind. The opposite of what Labor has promised.
O’Brien says Jim Chalmers has failed to “stop his spending spree and he has failed to start growing the economic pie”. He says there are “too many” young Australians who cannot afford to buy a home:
Every time they try to look at that online mortgage calculator, the numbers just do not add up. Today’s decision will continue to see it very difficult to add up. In fact, next year it will be even more expensive for young Australians who want to enter the property market.
Updated at 23.31 EST
Patrick Commins
Jim Chalmers says “millions of Australians would have preferred more rate relief”, after the Reserve Bank held its cash rate at 3.6%.
The treasurer in a statement noted that a rate cut wasn’t on the cards – a recent jump in inflation made sure of that.
No surprise that Chalmers is focusing on the positives: mortgage holders have had three rate cuts this year, he said, and inflation at 3.8% is a lot lower than the 7.8% post-pandemic peak at the end of 2022:
While inflation has ticked up recently, this is partly due to temporary factors and it’s something we’ve seen in many parts of the world.
The outlook for rates remains distinctly darker.
The RBA board’s statement suggested members are more worried about inflation than they were at their last meeting six weeks ago.
The central bank’s language gives little hope for a fourth rate cut, although it is well short of endorsing the judgement in financial markets that a rate hike is inevitable in 2026.
“We know there is still more work to do and people are still under pressure, which is why we’re continuing to roll out responsible cost of living relief including tax cuts for every taxpayer, slashing student debt, cheaper medicines and more bulk billing,” Chalmers said.
ShareLuca Ittimani
Inflation pick-up may not be one-off, RBA warns
The Reserve Bank has warned of signs of a broad rise in inflation, after previously claiming rapid price rises were likely to remain temporary.
Consumer prices have risen faster than expected in recent months, in part due to one-off jumps in air fares, jewellery and childcare and medical costs.
But the RBA’s monetary policy board said price hikes could spread and there was now more of a risk of inflation rising than falling. The RBA statement read:
The data do suggest some signs of a more broadly based pick-up in inflation, part of which may be persistent and will bear close monitoring.
Recovering spending from households and businesses could become part of the unanticipated problem, the bank warned:
The pick-up in momentum has been stronger than anticipated, particularly in the private sector. If this continues, it is likely to add to capacity pressures.
Updated at 23.15 EST
Nick Visser
That’s all from me. Adeshola Ore will take things from here, before Luca Ittimani brings the blog home this evening. Take care.
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Daisy Dumas
NSW RFS issues leave now warning for residents near Capertee national park
Residents near New South Wales’ Capertee national park have been told to leave now as an out-of-control bushfire burns nearby.
The RFS issued the emergency warning a short time ago, advising residents in the area of Home Hills Road near Bogee that they were in danger. The agency said:
If you are between Marsden Road and Capertree River on Home Hills Road, you are at risk.
Leave now in a northerly direction along Home Hills Road and Glen Alice Road towards Rylstone.
Emergency Warning: Home Hills Rd Fire, Bogee (Lithgow LGA)
A bush fire is burning near Home Hills Rd, Bogee. If you are in the area of Home Hills Rd, you are in danger. Leave now in a northerly direction if the path is clear towards Rylstone. https://t.co/V432bL5FIV pic.twitter.com/E4yNoSVkAw— NSW RFS (@NSWRFS) December 9, 2025
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Andrew Messenger
Queensland parliament to sit for just 14 weeks next year
Queensland’s parliament will sit for just 14 weeks – 46 days – next year, under the new LNP government.
It’s the briefest parliamentary schedule since the pandemic, except 2024, which had fewer sitting days due to the election that year.
Parliament sat for as long as 49 days during Labor’s last term, but typically about 46.
There are also more days of estimates hearings under the LNP, which means fewer days debating and passing bills. There will be just 33 ordinary sitting days, with parliament wrapping up in November.
Parliamentary sitting days are particularly significant in Queensland because the state does not have an upper house to review government decisions and as a result its committee system is more partisan than other states. That makes question time one of the few opportunities to keep governments accountable; there will be just 37 next year.
The Labor opposition often criticises the government for lacking a legislative agenda. The brief sitting year will do nothing to quieten the allegation.
Queensland parliament will sit for 46 days in 2026. Photograph: Jono Searle/AAPShare
Updated at 22.55 EST
RBA leaves cash rate target on hold at 3.6%Luca Ittimani
The Reserve Bank has left its key interest rate on hold, as widely expected by economists. The official cash rate remains 3.6%.
Markets had predicted there would be no change, with traders betting the RBA would next hand down a rate hike by August 2026.
We’ll bring you more from the interest rate-setting board’s statement in just a moment.
The RBA has kept the official cash rate on hold at 3.6%. Photograph: Mark Baker/APShare
Updated at 22.35 EST
95% of participating staff vote for no confidence motion against UTS vice-chancellor
95% of staff at the University of Technology Sydney (UTS) who participated in a recent motion voted to declare no confidence in vice-chancellor Andrew Parfitt.
The National Tertiary Education Union (NTEU) said today more than 1,500 UTS staff participated in the vote, which came after controversial plans to slash hundreds of jobs and suspend enrolments in more than 120 courses.
Dr Sarah Attfield, the UTS branch president for the NTEU, said in a statement the “powerful response from staff confirms what we have already known and felt deeply for many months now – the vice-chancellor’s plans are not aligned with a public institution, and staff have little faith in his leadership”. She went on:
Staff are exhausted, demoralised, and fearful. We have seen our colleagues pushed to the brink, courses slashed, and the student experience threatened – all while the VC and his executive ignore the people who keep this university running.
Today’s results send a clear message to the public and UTS Council: the vice-chancellor has lost the mandate to lead.
The UTS campus. Photograph: Graham Jepson/AlamyShare
Updated at 22.22 EST
Tasmania Fire Service issues watch and act warning for St Helens
Tasmania Fire Service just issued a watch and act warning for a bushfire in Diana’s Basin near the town of St Helens on the state’s north-east coast.
Officials said the fire is heading towards Diana’s Basin and is expected to impact the area beginning at 2pm.
The fire is expected to be difficult to control, and embers, smoke and ash may fall on the region and surrounding areas, which could threaten individuals or property before the main fire.
Officials said:
Smoke and ash may make it difficult to see and breathe.
Take action now to protect yourself, your family, and your home. If you have made a bushfire plan, check it now.
Decide early if you are going to leave, and make sure you have a clear path to a safer place.
Updated at 22.07 EST
Cait Kelly
Peak welfare groups say report highlights failures across employment system
Australia’s peak welfare groups have responded to the ombudsman’s report on jobseekers, highlighting the failures across Australia’s employment system.
The Acoss CEO, Dr Cassandra Goldie, said:
This report demonstrates widespread harmful action against low-income people and complete lack of oversight of private providers, alongside the thousands of illegal payment cancellations already identified.
In a system that hands employment service providers $1.2bn a year, the lack of robust independent oversight is unacceptable.
Antipoverty Centre spokesperson and jobseeker recipient Jay Coonan called for the immediate pause of suspensions:
Payment suspensions cause immeasurable damage to our lives, destabilising people when we are already struggling to survive. This scandal must end, not when the government decides what tweaks it would like to make to this system, but now.
And the executive director, Kasy Chambers, said the report shows that for-profit employment service providers and the compliance system are hurting the people who rely on them:
The Ombudsman has found that providers are making incorrect decisions, keeping poor records, and giving people unclear or misleading information about their payments.
These failures are leading to unfair suspensions and penalties for people on the lowest incomes. Even when suspensions are overturned, the stress and hardship that a person faces after having their income taken away is irreversible.
Updated at 21.54 EST
Daisy Dumas
Tasmania’s Dolphin Sands reopened to residents after fire
Tasmanian residents who fled from bushfires last week will be able to return to their properties this afternoon.
Nineteen homes were lost to a blaze in Dolphin Sands on the state’s east coast on Thursday. Dolphin Sands Road reopened to local traffic from 1.30pm today, emergency services said.
Southern Regional emergency management controller, commander Jason Elmer, said:
Thanks to crews working tirelessly to clear debris and restore damaged infrastructure, and with wind conditions easing, the situation has improved enough to allow safe access for local traffic.
There are still significant safety factors to consider, so police roadblocks will remain in place on Dolphin Sands Road to ensure access is only provided to local residents.
Residents were warned to wear protective clothing and try not to disturb dust and ash given the possible presence of hazardous materials, including asbestos.
Tasmania firefighters battling the Dolphin Sands fire earlier this week. Photograph: Tasmania policeShare
Updated at 21.38 EST