Perpetual expects RBA to hold rates steady for extended period
TLT•Perpetual expects the RBA to keep rates steady for an extended period while assessing the impact of five increases in 2026. Markets price Australian rates peaking at 4.85% and a full 25-basis-point cut by the December 2027 board meeting.
1. Australian rates outlook
Perpetual’s analysis favors Australian rates staying higher for longer, arguing an investment boom could delay easing beyond late 2027. Markets price rates peaking at 4.85%, with a full 25-basis-point cut priced by the December 2027 board meeting.
2. US rate expectations
Strong October payrolls make a December 9 Federal Reserve rate increase likely, while markets price only a 70% chance. Falling technology shares and lower oil prices fueled bond rallies, reducing expectations for further US monetary tightening.
