The Reserve Bank of Australia’s Board of Directors decided at its meeting this morning, Tuesday, September 30, to keep interest rates unchanged at 3.60%, as expected, for the third consecutive meeting, due to a slowdown in core inflation.
The bank’s interest statement stated that inflation has declined significantly since its peak in 2022, as higher interest rates helped balance aggregate demand and potential supply. Both headline and moderate inflation ranged between 2-3% in the second quarter ending in June. However, recent data indicates that inflation in the third quarter may be higher than expected.

There are uncertainties surrounding the outlook for local economic activity and inflation due to domestic and international developments, and uncertainty in the global economy continues. With inflation likely to persist in some areas and labor market conditions stabilizing, the Board decided it was appropriate to maintain the policy rate at its current level. The Board emphasized that it remains mindful of the high level of uncertainty surrounding the outlook and that the Board will pay close attention to data and the evolving assessment of risks, global developments, trends in domestic demand, inflation expectations, and labor markets, and will do what it deems necessary to achieve price stability and full employment.