The Reserve Bank has kept the cash rate on hold as was widely expected, leaving mortgage holders with just two more opportunities for further interest rate reductions in 2025.

The decision leaves the official cash rate at 3.6 per cent .

Hopes for a September rate cut were quashed earlier this month when updated inflation figures were released, showing inflation in some areas of the economy had re-accelerated.

The consumer price index rose 3 per cent for the year to August, up from 2.8 per cent the month before and its highest level in more than a year, the Australian Bureau of Statistics reported.

However, the Reserve Bank has consistently said it was more interested in the quarterly inflation prints, as the monthly figures were volatile.

It also prefers to read the underlying infl

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