30th September 2025 | Source: www.abc.net.au
The Reserve Bank has left interest rates on hold at 3.6 per cent, having cut them at its previous meeting in August.
The RBA has lowered interest rates three times this year, from a peak of 4.35 per cent before February’s board meeting.
Graham Cooke, the head of consumer research at Finder, says that means most mortgage borrowers with variable loans should already be on an interest rate of 5.5 per cent or less.
“If you’re currently paying more than 5.5 per cent for a variable rate, you’re probably paying too much,” he said.
RBA flags ‘cautious’ approach to potential future cuts
In her post-meeting press conference, RBA governor Michele Bullock said the bank was wary of any uptick in inflation.
“Market services and housing inflation were a little higher than we were expecting,” she said.
Market bets moving towards just one more rate cut
As part of the bank’s “cautious” approach to setting interest rates, Ms Bullock said the board would look at it “meeting by meeting, based on the data”.
“We don’t really know where everything is in balance at the moment. We think we’re close, but we don’t know,” she told David Chau from ABC News.
“It’s welcome that we’re getting this swing-up in activity.
“And if we can get that swing-up in activity at the same time as the labour market remains reasonably in balance, then that will also mean that inflation is staying under control.”
Note: This article has been sourced from www.abc.net.au as published on the 30th of September 2025.