2026 isn’t shaping up to be a smooth, straight line for business owners.
According to the Reserve Bank of Australia, financial conditions are easing in some areas — but tightening in others — creating a year that will require careful balance and forward planning.
📈 Where conditions are improving
Earlier cash rate cuts are starting to flow through the system. Businesses are seeing:
• Lower funding costs
• Easier access to credit
• Reduced lending spreads
• Supportive capital markets
On the surface, these are positive signs for borrowers.
📉 Where pressure is building
At the same time, the RBA notes growing challenges:
• Demand patterns are shifting
• Business debt is rising to manage cash flow
• Economic growth is expected to lift only slightly
• Unemployment is forecast to sit around 4.5%
• Inflation may remain above target until late 2026
This combination keeps lenders cautious and means credit settings can change quickly.
⚖️ What this tug-of-war means for borrowers
When conditions move in two directions at once, lending policies, pricing and refinancing terms often follow suit. For businesses with loans expiring soon or plans to restructure, reviewing options early can help avoid being caught off-guard if market conditions tighten again.
If you’d like to chat about how this may impact your business finance strategy for 2026, feel free to reach out.
