RBA Holds Rate at 3.6%; Cuts Pushed to 2026

The Reserve Bank of Australia held the cash rate at 3.6% on Sept. 30, saying the decline in underlying inflation has slowed and warning third‑quarter inflation may be stronger than expected. After three cuts this year totalling 75 basis points, the board said it remains cautious and data‑dependent, with Governor Michele Bullock to hold a post‑meeting press conference. The RBA signalled further cuts are unlikely unless growth falters, and many forecasters and markets have pushed expectations for the next cut out into 2026. Headline inflation was 3.0% in August and some underlying measures have eased, and the bank is awaiting the full Q3 inflation report due in late October. Australian markets reacted modestly — the S&P/ASX 200 slipped about 0.2% as financials and energy weighed while Star Entertainment rose after securing a loan covenant waiver. Signs of labour‑market softening and rising unemployment have drawn criticism from groups like ACOSS, which says maintaining rates could harm vulnerable Australians and calls for targeted fiscal support.