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Australia keeps policy rate steady at 3.6% as inflation creeps up
CNBCยท2025-09-30 04:32

Core Viewpoint - The Reserve Bank of Australia (RBA) has maintained its benchmark policy rate at 3.6% amid rising inflation, which is currently at its highest level in over a year [1][2]. Economic Indicators - Australia's headline inflation rate for August was reported at 3%, the highest since July 2024, driven by increases in housing, food, and alcohol prices [2]. - The RBA noted that inflation in the September quarter may exceed previous expectations, indicating potential persistence in certain areas [2]. Monetary Policy Actions - The RBA has reduced rates by 75 basis points in 2025, following a period of stability at 4.35% since November 2023, as part of efforts to control inflation [3]. - The central bank's decision to hold rates reflects a focus on curbing inflation while acknowledging the uncertain economic outlook [3][4]. Economic Growth - Australia's GDP grew by 1.8% year-over-year, surpassing the 1.6% forecast by economists and improving from the previous quarter's 1.3% growth [5]. - On a quarter-over-quarter basis, GDP increased by 0.6%, exceeding the 0.5% expected growth [5]. - The growth was primarily driven by domestic spending, including household and government consumption [5].