RBA Holds Cash Rate Steady at 3.60%, Signals Vigilance Amid Rising Inflation

Citing continual inflation, the Reserve Bank of Australia (RBA) unanimously voted to keep the cash rate stable at 3.60% in its November 2025 financial policy review. Inflationary pressures drive the main motor. Recent numbers revealed that in the September quarter, trimmed mean inflation climbed to 3.0% yearly, exceeding RBA predictions and market estimates. Headline inflation also climbed to 3.2%, surpassing the central bank's target range of 2–3%. Although the bank has adopted a conservative position in response to the rise in core inflation, annual inflation has fallen from its 2022 highs.

As elements supporting continued economic expansion, the board underlined a strong labor market and rising private demand. It also recognized, though, the need for patience as the results of past rate cuts play out. Governor Michele Bullock stressed how the RBA kept a careful eye on unknowns in both the world and domestic economic projections. The bank is still wary about acting prematurely despite the surprise of inflation and the easing of financial circumstances since early 2025.

Market consequences of the ruling are a big expectation reduction for a rate decrease, now projected no sooner than 2026, frustrating mortgage holders expecting relief. Real estate analysts said the RBA's choice represents a "watchful pause," unlikely to impede a property market comeback that saw home values up 7.5% year-over-year. The central bank reiterated its dedication to attaining price stability and complete employment going ahead, remaining data-dependent in its next choices.