Australia's central bank leaves cash rate unchanged at 3.6%

Inflation has increased and is back above its 2-3-per cent target range, where it is expected to stay for a while. The unemployment rate has risen a little, but the jobs market is healthy and is expected to remain that way, the bank said in a release.

The unemployment rate is expected to stabilise at around 4.25 per cent, with businesses still hiring.

Households have been spending more this year as incomes have risen. The unemployment rate has gone up a little, but the number of jobs in the economy has continued to grow.

“The interest rate cuts earlier this year will support household and business spending, and so economic growth, in the period ahead. Although global growth is expected to slow, the effect on Australia is not likely to be large—based on what we currently know,” the central bank said.

The bank expects inflation to be above 3 per cent for much of next year before declining to around the middle of its target range by late 2027.

ALCHEMPro News Desk (DS)