Inflation is easing, but not defeated – which keeps borrowing conditions in play for 2026.

ABS data shows headline inflation fell from 3.8% in October to 3.4% in November. That’s progress – but it’s not the clean victory many hoped for mid-2025.

Back in June, when inflation dipped to 1.9%, it felt like the Reserve Bank of Australia (RBA) had done its job. Since then, price pressures have proven harder to shake, reminding markets that inflation can stall or re-accelerate.

What that means for borrowers

The RBA will factor this persistence into how it approaches the cash rate in 2026. That matters because lenders tend to respond cautiously when inflation isn’t fully tamed:

• Rate repricing can become uneven.

• Credit teams may tighten policy quietly.

• Approval timeframes can stretch for marginal deals.

How businesses stay flexible

In this environment, resilience matters more than headline rates. Borrowers benefit from:

• Comparing banks and non-banks side by side.

• Using structures that can adapt if pricing shifts.

• Aligning repayments with real cash flow, not best-case forecasts.

If you want to pressure-test your loans against a less predictable 2026 outlook, contact me and we can map where flexibility matters most.