- The RBA has kept the cash rate on hold at 3.60% for September.
- Unemployment remains low while the data suggests inflation still isn't going away.
- The next decision in November will take place after the all-important Q3 inflation numbers.
It was a decision widely predicted, with no substantial increase in unemployment since the last RBA meeting and the definitive Q3 inflation numbers not set for release until late October.
The Board voted unanimously to hold, noting "indications that inflation may be persistent in some areas" and that it will "take some time to see the full effects of earlier cash rate reductions".
The attention of mortgage holders and savers will now turn to the November decision on Melbourne Cup day, which could be a live one.
Until recently all of the big four banks' economics teams were predicting another 0.25% cut in November, taking the cash rate to 3.35% p.a., but the monthly inflation numbers for July and August have been enough for NAB to change its mind.
The NAB economics team believes that while the RBA has "cautioned against reading too much into monthly inflation data", the August numbers were "too strong to ignore".
"The market services components were hotter than we had expected and this dynamic will be reflected in the quarterly inflation print," NAB Group Chief Economist Sally Auld said.
NAB now no longer expects any rate cuts in 2025, pencilling the next one in for May next year.
Mortgage holders urged to explore their options
While today's news is unsurprising it will still come as a major disappointment for many Australians with a home loan.
There have been three cuts so far in 2025, but unlike earlier in the year any further loosening of monetary policy doesn't appear a sure thing.
Finance Brokers Association of Australia (FBAA) managing director Peter White says Aussies with a home loan shouldn't be banking on further relief from the RBA, and instead should be proactive in seeking to improve their own situation.
"Talk to your lender first and ask for a rate reduction," Mr White said.
"If this is rejected there may be refinancing options.
"Don't assume the major banks are the only lenders, as there are many second tier banks and non-bank lenders with excellent mortgage products, some of which are only offered through mortgage brokers."
Read more: Banks v Credit Unions v Non-bank lenders