All eyes were on interest rates this year as households and businesses struggled with the cost of living. The Reserve Bank kept the cash rate on hold at 3.6% at its December meeting. The bank next meets in February 2026. 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. CBA's chief economist Luke Yeaman has told Close of Business, when it comes to mortgage rates it's a watch and wait situation. "Look, I think it's still too early to say for sure that they're going to go up from here. And, as I said, our current view is that interest rates are probably on hold for an extended period through 2026. But the pressure is building and we're certainly not going to see any rate cuts." Investors had a wild ride on markets in 2025 as Trump's tariffs shock was replaced by a TACO (Trump Always Chickens Out) recovery, while the AI boom, had investors worrying it could soon turn to bust if promised earnings don't materialise. Kyle Rodda from Capital.com joined the program to look at the risks investors will need to mitigate in 2026. Close of Business is presented by Alicia Barry. This is the final in the series.
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