With Christmas dawning upon us and CPI down from 5.6 to 4.9 per cent, it is without a doubt time for another interest rate rise pause.

Whilst conflict has resumed in Gaza, which last month’s market fears could be attributed to, inflation has quickly decreased as previous rate rises have taken their effect.

Household spending will only increase pre-Christmas, then drastically decrease post-Christmas, and as CPI is on the decline, why not pause in January too and let households recover with a more stable rate?

The value of the AUD is increasing, with two-year lows, hopefully but not definitely, behind us and this means that inflation has a chance of cooling further too, as the cost of living for everyone becomes less strenuous.

That seems to be what has happened.

Whilst no one really knows the answer to Australia’s inflation problem, it could certainly be argued that a pause for a couple of months will give borrowers a break before a potential further rate rise in February.

At least it will allow businesses to recover over Christmas and households over January.

Walking the fine line of balancing business and economic growth with interest rate rises is certainly tricky, but not impossible, and if the market is left to self-correct without intervention, the likelihood of inflation sticking is lower.

So, with another rate rise pause probably on the agenda early next year, start planning your Christmas celebrations and enjoy the festive season now.

Reinvest in your time off whilst you can and if the market is left to correct itself for a brief interlude, we could quite possibly all be better off for it.

With school holidays finishing at the end of January, why not let inflation cool naturally at the highest cash rate experienced in Australia in over 10 years till then?

“The pursuit, even of the best things, ought to be calm and tranquil.” – Marcus Tullius Cicero.