RBA Holds Rates Steady as Signs of Cooling Emerge

Australia’s cash rate will remain unchanged this month, with the Reserve Bank opting to keep settings steady as evidence grows that the economy is finally losing some heat.

Inflation is still sitting above the Bank’s comfort zone, but recent data points to a gradual slowdown in consumer spending and a softening labour market — enough for policymakers to hit pause rather than risk over-tightening.

RBA Governor Michele Bullock said the path back to the inflation target remains “uncertain,” but noted that pressures are easing compared with earlier in the year. Markets now expect rates to stay on hold into early 2026, barring any unexpected spike in prices over the summer period.

For households, the decision brings a brief moment of stability after two years of aggressive rate moves. But experts warn that mortgage stress will remain elevated until inflation retreats further and meaningful rate cuts are back on the table.