ETFs Surge in Popularity & Markets Betting on an RBA Rate Rise in 2026

ETFs surge in popularity & markets betting on an RBA rate rise in 2026

SBS Finance Editor Ricardo Gonçalves speaks with Andrew McAuley from UBS Global Wealth Management Australia about the changing interest rate outlook and what it means for 2026; Cameron Gleeson from Betashares explains the recent pick up in ETF activity; and a look at the day on the sharemarket with Hebe Chen from Vantage Australia.

Markets bet on several RBA rate rises in 2026

RBA governor Michele Bullock has triggered a huge repricing of rate expectations. Financial markets are now fully priced for a cash rate increase by May next year.

UBS Shifts Expectations for RBA Rate Hike

UBS economist George Tharenou has revised the firm’s outlook for the Reserve Bank of Australia (RBA), now anticipating the first cash rate increase to occur by the second quarter of 2026. This represents a shift from UBS’s previous forecast, which had anticipated the initial rate hike in the fourth quarter of 2026. The change in UBS’s forecast follows the RBA’s decision to hold rates steady at 4.35 per cent during its recent meeting. The RBA boa…