EconomicsCentral Banks

Australia Set to Hold Key Rate as Scope for Further Easing Slims

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Commuters walk through Martin Place Metro Station in Sydney, Australia.

Photographer: Brendon Thorne/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Swati PandeySeptember 28, 2025 at 7:00 PM UTCBookmarkSave

Australia’s central bank is set to keep interest rates unchanged this week, with traders and economists highlighting that a tight job market and renewed inflation pressures may limit the scope for further easing.

The Reserve Bank will hold its cash rate at 3.6% on Tuesday, economists predicted in a Bloomberg survey after the policy-setting board cut for the third time this year in August. The median expectation is now for one more cut in November and then a prolonged pause until the third quarter of 2026. That compares with a previous forecast of two more reductions by early-2026.

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