RBA Minutes Show Rate Held, Data-Driven Path to Easing

The Reserve Bank of Australia on Tuesday released minutes from its September policy meeting that explain why the board left the cash rate unchanged at 3.60 percent and signalled a cautious, data dependent approach to any further easing. The minutes, published two weeks after the decision and ahead of the RBA's next meeting on November 4, show policymakers weighed persistent inflationary pressures, a still-tight labour market and signs that earlier rate cuts were supporting housing and consumer activity.

At the September meeting the board concluded there was no immediate need to reduce the cash rate after three quarter-point cuts earlier in 2025. The minutes note monthly consumer price readings for July and August pointed to upside risk for third-quarter inflation, with housing and services costs especially influential. Monthly inflation rose from 2.8 percent to 3.0 percent in August, near the top of the RBA's target band of 2 to 3 percent, and the bank said quarterly inflation due before the November meeting would be pivotal to its next decision.

Governor Michele Bullock, speaking after the decision, described the board as wary of making immediate cuts because inflation had...