The Reserve Bank today held the official cash rate steady at 3.60 per cent, a predictable decision following its 25 basis-point cut at the August meeting, the third such reduction in 2025.

In doing so, the Bank signalled a cautious approach, with Governor Michele Bullock noting that the information received since August "has not materially altered the outlook, the key judgments or the risks that the Board sees."

The decision was widely expected.

Over the past month, the flow of data has not pointed to any urgency to adjust monetary policy further.

If anything, stronger-than-expected growth and consumption have reduced the likelihood of additional cuts in 2025.

This has led markets to pare back expectations for further easing, which until recently had included a possible November rate

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