Overview
- The board left rates unchanged in a unanimous decision, saying inflation has picked up and that some pressures look persistent despite temporary factors in the September quarter.
- The Statement on Monetary Policy lifts core inflation projections to about 3.2% through mid‑2026 and sees headline CPI peaking near 3.7% by mid‑2026 before easing toward 2.6% by 2027.
- Policy assumptions embed a cash rate near 3.6% through end‑2025, drifting to roughly 3.4% in mid‑2026 and 3.3% thereafter, signaling a slow path to any further cuts.
- The RBA describes the labour market as a little tight even after unemployment spiked to 4.5%, with forecasts centered near 4.4% and financial conditions judged closer to neutral.
- A 1.0% quarterly jump in trimmed‑mean inflation drove the pivot from this year’s easing to a hold, as stronger consumption and rising home prices complicate timing for future relief.