Overview
- The board left the cash rate unchanged at 3.6% in a unanimous decision after Q3 trimmed‑mean inflation surprised at 1.0% quarter‑on‑quarter and 3.0% year‑on‑year.
- The new Statement on Monetary Policy projects trimmed‑mean inflation near 3.2% through mid‑2026 and headline CPI peaking around 3.7% in mid‑2026 before easing toward 2.6% by 2027.
- Policymakers said the economy likely has less spare capacity than previously thought, pointing to stronger consumer demand, faster house‑price gains and lingering tightness in the labour market.
- Governor Michele Bullock said a hike was not discussed and gave no forward guidance, emphasizing meeting‑by‑meeting decisions and acknowledging it is possible there are no further cuts.
- Banks and markets pushed back easing expectations, with CBA abandoning an early‑2026 cut call, as the December meeting approaches alongside more frequent CPI readings from the ABS.