Big Four bank warns Australian mortgage holders of rising rates

A CommBank report predicted an imminent 25 basis-point cash rate rise while the cash rate was reported at 3.6% after three cuts in 2025.

Australia's biggest bank warned mortgage holders they may face higher costs in 2026 as interest rate rises were reported to be a possibility. In 2025 the Reserve Bank reduced the cash rate three times to 3.6%, its lowest level since 2023. Several banks and economists have adjusted expectations about cuts and future moves. A CommBank Economic Insights report said a 25 basis-point hike was likely. Key points: - CommBank's December report was reported to predict a 25 basis-point cash rate increase could be imminent and projected the cash rate at 3.85% by the end of 2026. - The cash rate was reported as 3.6% after three reductions in 2025, the lowest level since 2023. - NAB was reported to forecast two 25 basis-point rises before June, while Westpac and ANZ were reported to expect rates to remain steady and had largely given up on earlier hopes for cuts. - The RBA was reported to be set to release its monthly consumer price inflation measure soon, and a monetary board meeting was reported to be scheduled on December 3 with the decision announced at 2:30pm. Summary: Officials reported that mortgage costs may rise if the cash rate increases, and lenders and economists have reduced expectations of rate cuts in 2026. The cash rate was reported as 3.6% after three cuts in 2025. The RBA's upcoming inflation release and the reported monetary board meeting were identified as the next scheduled datapoints.