The Reserve Bank gave us an early Christmas present last week by keeping the cash rate on hold at 2.75%. It was an unexpected pause. Although we have been consistently singing from the dovish hymn sheet, urging the Reserve Bank to keep rates on hold, we thought they would hike last week. We continue to expect a 25 basis point hike to 3% before the year end. Their next decision is on the 9th of December. This view is echoed by Reserve Bank Governor Anna Breman, who attributes a “high” probability of a hike in December.