The Reserve Bank of Australia kept the cash rate unchanged at 3.60% in September 2025, citing signs of stabilizing demand, easing financial conditions, and still-elevated uncertainty in the domestic and global outlook.

• Both headline and trimmed mean inflation remained within the 2–3% target range in Q2, though partial data suggest Q3 inflation could be higher than expected in August.

• Private demand has strengthened, with household consumption and housing market activity recovering as real incomes rise and credit conditions remain supportive.

• The unemployment rate held steady at 4.2% in August, while employment growth slowed slightly more than anticipated; underutilisation remains low.

• Wage growth has eased from earlier peaks, but weak productivity continues to keep unit labour costs high.

• Global risks remain elevated, with U.S. tariffs and trade policy still weighing on growth expectations despite reduced risk of extreme outcomes.

• The Board judged that maintaining the current rate was appropriate given improving private demand, still-tight labour conditions, and uncertainty about inflation persistence.