RBA holds rate at 3.60% as inflation and tight labour market persist

The Reserve Bank of Australia left its cash rate unchanged at 3.60 percent on Tuesday, citing signs of renewed inflationary pressure and a still‑relatively tight labour market, and said future policy moves would depend on incoming data. The nine‑member board voted unanimously to hold the official rate at its November meeting in Melbourne.

The decision followed a surprise acceleration in third‑quarter price readings. Consumer prices rose 1.3 percent over the quarter, lifting annual inflation to roughly 3.2 percent and pushing several measures of underlying inflation above forecasts. The RBA and other officials noted trimmed‑mean inflation, the bank’s preferred gauge, jumped more than expected, adding to evidence that some domestic inflationary pressure has returned even as private demand shows tentative recovery.

RBA officials said the mix of firmer inflation and labour market signs justified keeping policy settings unchanged for now. The board’s statement said recent data suggest some inflationary pressure may remain and that, with private demand recovering and labour market conditions still a little tight, it was appropriate to maintain the cash rate at this meeting. The bank...