They emphasized the need to stay alert given the elevated uncertainty surrounding the economic outlook.

“Many Australian homeowners may not have desired this outcome, but it aligns with what markets and economists predicted,” he mentioned to the media.

Recent inflation indicators

According to the Australian Bureau of Statistics, consecutive monthly reports revealed that the Consumer Price Index rose 2.8 per cent over the year to July, and then 3 per cent over the year to August—marking the highest rate since July 2024.

The RBA board also acknowledged that both domestic and international factors contribute to uncertainties about the domestic economic trajectory and inflation rates.

However, a recent growth in consumption may not continue “particularly if households become more concerned about overseas developments”.

Treasurer responds to RBA decision

“The three interest rate cuts that are already in the system are already providing welcome relief to Australians with a mortgage.”

Meanwhile, Opposition treasury spokesperson Ted O’Brien criticized the decision to hold the cash rate as a sign of economic mismanagement and excessive government spending.

The chance of another interest rate cut this year

David Bassanese, the chief economist at Betashares, noted that the RBA’s statement had a “hawkish” tone, implying that they might be less likely to cut interest rates in November than previously thought. However, the Consumer Price Index data for the September quarter will play a crucial role in their future decisions.