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Australia's Central Bank Holds Interest Rates Steady
The RBA paused at 3.6% due to inflation above target and economic risks, with inflation forecast to reach 3.7% by mid-2026, delaying relief for borrowers.
- Recently, the Reserve Bank of Australia kept the cash rate at 3.6% for the second straight meeting, with the nine-member board unanimously voting to leave policy unchanged.
- September quarter data showed inflation pickup, with the trimmed mean expected to reach 3.2 and headline inflation to hit 3.7% by June next year, according to the RBA.
- Labour-Market firmness is illustrated by ongoing employment strength, with unemployment at 4.5%, supporting Australia's economic resilience, according to the RBA.
- For homeowners and mortgage holders, borrowing costs remain high with little relief, while ANZ, Westpac and NAB expect only limited cuts next year and traders signal a prolonged pause.
- There is another RBA meeting in early December to reassess conditions, and from November 26 the ABS will publish monthly inflation data while Paul Bloxham expects rates to hold through next year.
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RBA keeps interest rates on hold, leaving borrowers looking further ahead for relief
As expected, the Reserve Bank of Australia (RBA) has kept the cash rate steady at 3.6%. Its board unanimously agreed it was better to “remain cautious” on interest rates. While borrowers may have been hoping for rate relief, the decision came as little surprise to economists and markets, after stronger-than-expected inflation data – something the board’s statement emphasised, along with local and global uncertainty. “Inflation has fallen substan…
Coverage Details
Total News Sources18
Leaning Left2Leaning Right4Center3Last UpdatedBias Distribution45% Right
Bias Distribution
- 45% of the sources lean Right
45% Right
L 22%
C 33%
R 45%
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