<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians struggling under the weight of high mortgage repayments now won't receive any more relief from the RBA, according to one of the nation's biggest banks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Reserve Bank has handed down three rate cuts this year, and most economists had been predicting another one or two were still to come by midway through 2026.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Indeed, just a fortnight ago, the market had been pricing in a more than 80 per cent chance of a cut next week.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/inflation-australia-september-quarter-cpi/7e486a55-1073-4e32-877b-bce90690255f" rel="" target="" title="Rate cut hopes dashed after inflation data comes in hot"><strong><span>Rate cut hopes dashed after inflation data comes in hot</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But yesterday's </span><a href="https://www.9news.com.au/national/inflation-australia-september-quarter-cpi/7e486a55-1073-4e32-877b-bce90690255f" rel="" target="" title="scorching inflation data, with the CPI rising by 1.3 per cent in the September quarter"><span>scorching inflation data, with the CPI rising by 1.3 per cent in the September quarter</span></a><span>, while the trimmed mean – the RBA's preferred measure of underlying inflation – rose by an even 1.0 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Michele Bullock said on Monday that even a 0.9 per cent result on the latter measure would be a "material miss", and economists have been quick to push back their forecasts in the wake of yesterday's data.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Westpac, which had previously been an outlier as the only member of the big four to be banking on a rate cut next week, scrapped that prediction yesterday, saying even February may be too soon for the RBA to reduce the cash rate again.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/commonwealth-bank-westpac-interest-rate-cut-forecasts-high-inflation/85ab1489-c06f-4e62-839e-c88ed18b34d4" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/easey-street-murder-perry-kouroumblis/3d7a6d9b-6434-4647-86c9-8e827fdd45d5"><strong><span>Lawyer for accused Easey Street double murderer raises 'alternate suspect'</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Even a February cut is far from certain now, given the size of the upside surprise this quarter," chief economist Luci Ellis said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We are conducting a full reassessment for the cash rate outlook in light of both the inflation outcome and the evolving picture on domestic demand."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The more alarming new forecast, though, came from Commonwealth Bank, which now believes the RBA is finished cutting and will leave the cash rate at 3.60 per cent for the foreseeable future.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Given the material upside surprise to the Q3 25 CPI, and the broad‑based nature of pricing pressures, we now expect the RBA to remain on hold from here," senior economist Belinda Allen said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/trump-and-xi-to-hold-trade-talks-on-apec-summit-sidelines/0800cd53-2773-411d-822a-2e9338afc196"><strong><span>Trump confident of clinching trade deal from high-stakes meeting with China's leader</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Previously, we expected one last rate cut in February 2026 to bring the cash rate back closer to neutral.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Higher inflation and the cyclical upswing in demand now underway, driven largely by consumption and housing, will see the RBA conclude that the economy needs the cash rate to remain in slightly restrictive territory."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The nation's biggest lender even cautioned that the Reserve Bank may be forced to raise interest rates next year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The latest data has tilted the risks to the upside, and the RBA will be closely watching the monthly inflation data," Allen said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If inflation remains elevated in 2026 as we expect it could, the RBA may need to act."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/victoria-cricket-player-in-critical-condition-after-incident-during-warm-up-ferntree-gully/c1dcd6ec-69cb-4810-a69c-d8fa5c427e08"><strong><span>Teenage cricketer fighting for life in hospital after being injured in warm-up</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Ellis, though, had a silver lining for borrowers sweating on another rate cut, saying there could be more relief than expected next year because the chance of a pre-Christmas rate cut has been ended.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Delay now adds to the chances of more cuts next year," the Westpac chief economist wrote.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Over 2026, though, we expect the RBA to be surprised by the gradual softening in the labour market, and the resulting benign wages growth… easing in conditions should fade in 2027 assuming private sector demand growth does pick up as we are currently forecasting," she added. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"By that point, though, inflation could be below the target midpoint, which would point to scope for less restrictive monetary policy."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>:</span></em></strong><span> </span><em><strong><span>Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></strong></em><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple App Store</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU" target="_blank"><strong><em><span>Google Play</span></em></strong></a><strong><em><span>.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.</span></em></div></div>