MNI BRIEF: RBA Leaves Cash Rate At 3.6%

The Reserve Bank of Australia Board left the cash rate unchanged at 3.6% on Tuesday, saying it requires more data to judge the persistence of inflationary pressures. 

The widely expected, unanimous decision marks the third consecutive hold. (See MNI RBA WATCH: Board To Hold At 3.6%, Contemplate 2026 Outlook)

“Private demand is recovering. Labour market conditions still appear a little tight but further modest easing is expected. The Board therefore judged that it was appropriate to remain cautious, updating its view of the outlook as the data evolve,” the board said in a statement. 

Policymakers view some of the recent rise in underlying inflation as being driven by temporary factors, while uncertainty remains around how much weight to place on the monthly CPI release given the series is still relatively new. Even so, the data point to a more broadly based pick-up in inflation, some of which may prove persistent and will require close monitoring, the board added.

The Bank will remain highly attentive to incoming data and evolving risks, with particular focus on global economic and financial developments, domestic demand, and the outlook for inflation and the labour market. The Board reiterated its commitment to achieving price stability and full employment and said it will take whatever actions are necessary to deliver on that mandate.

Governor Michele Bullock will speak to the media at 3:30pm AEDT.