The Reserve Bank of Australia (RBA) kept the cash rate at 3.60% during its 30 September 2025 meeting. The move followed a 25-basis-point cut in August, marking the third adjustment this year. The board said ongoing uncertainty around inflation and growth calls for patience.
RBA officials noted that underlying inflation is easing more slowly than expected. Both headline and trimmed-mean inflation remain within the 2–3% target, yet new data show the September quarter may bring a slight uptick. The bank said delayed effects of past rate changes and mixed demand trends justify a pause.
Economists described the decision as a “hawkish hold.” They believe the RBA wants clearer signs before easing further. Some analysts expect a cut in November, while others, including NAB, predict no more changes this year.
The labour market continues to show resilience, but energy and housing costs still pressure household budgets. The RBA stressed it will stay flexible and adjust policy if domestic or global conditions shift.
Australia’s economy now faces mixed signals. Inflation has steadied but remains sticky. Growth is modest yet stable. By holding rates, the RBA aims to balance inflation control with economic support.
Market watchers will track CPI data, spending trends, and wage growth in the coming months. These indicators will shape expectations for the next move.
The RBA’s cautious stance reflects its focus on sustainable disinflation without derailing recovery. For now, policymakers appear ready to wait for stronger evidence before taking the next step.
