A bike courier rides past the entrance to the Reserve Bank of Australia (RBA) in Sydney’s central business district on April 2, 2013. Greg Wood/AFP via Getty Images
The Reserve Bank of Australia (RBA) has left the cash rate on hold at 3.6 percent, keeping policy steady after three cuts earlier this year.
The board said inflation has eased sharply from its 2022 peak but warned progress is slowing.
Both headline and trimmed mean inflation were inside the 2–3 percent target band in the June quarter. But early September data suggest price pressures may be stronger than expected.
However, in its post-meeting statement on Sept. 30, the board said that “Recent data, while partial and volatile, suggest that inflation in the September quarter may be higher than expected at the time of the August statement on monetary policy.”
The pause follows a 25-basis-point reduction in August, which took the cash rate down from 3.85 percent. That was the third cut in 2025, lowering rates by a total of 75 basis points this year.
Growth and Jobs Outlook
The RBA pointed to signs that the economy is picking up again.
Families are starting to spend more as household incomes improve and borrowing costs come down.
The housing market is showing fresh activity, suggesting earlier rate cuts are having an effect. Banks are also continuing to lend to both households and businesses.
Jobs growth has slowed a little faster than expected, but unemployment stayed steady at 4.2 percent in August.
Wages are no longer rising as quickly as before, though weak productivity means costs for employers are still high—something the RBA is watching closely.
