Australia Interest Rate

The Reserve Bank of Australia kept its cash rate unchanged at 3.6% during its November 2025 meeting, in line with market consensus and maintaining borrowing costs at their lowest since April 2023. The central bank noted that inflation has eased sharply from its 2022 peak, despite a temporary uptick in September. The board assumes one more rate cut in 2026, with underlying inflation expected to rise above 3% in the near term before moderating to around 2.6% by 2027. Policymakers highlighted ongoing uncertainty in both domestic and global outlooks, including stronger-than-expected private demand that could tighten labor markets and fuel inflation, and a slowdown that could weigh on growth. Globally, elevated geopolitical and trade tensions remain risks despite upward revisions to world growth forecasts. Financial conditions have eased, but the full impact of earlier cuts will take time. The RBA remains cautious and data-dependent, closely monitoring inflation, demand, and labor trends.