RBA kept the cash rate target unchanged at 4.35% today, as widely anticipated by markets. The central bank stated that data since the August Statement on Monetary Policy have “reinforced the need to remain vigilant to upside risks to inflation.” Maintaining its stance of “not ruling anything in or out,” RBA emphasized its determination to return inflation to target levels and affirmed it will “do what is necessary.”
Regarding the inflation outlook, RBA noted that headline inflation is expected to “fall further temporarily” due to federal and state cost-of-living relief measures. However, it does not foresee inflation returning sustainably to the 2–3% target range until 2026. This suggests that while short-term relief is expected, underlying inflationary pressures remain a concern over the medium term.
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