Rates On Hold

The Reserve Bank of Australia has kept interest rates on hold at its September meeting resolving to keep the cash rate target unchanged at 4.35%.

The RBA said inflation had fallen substantially since the peak in 2022, with the higher interest rates bringing down demand and supply closer to balanced.

“But inflation is still some way above the midpoint of the 2% to 3% target range,” it said.

The RBA says the outlook remains “highly uncertain” in terms of how soon inflation will ease.

In August, it predicted it would hit the target range by late 2025, mid-2026.

It says there remains a high level of uncertainty about the outlook overseas but returning inflation to target is the RBA’s priority.