The RBA ended the year with a steady hand, keeping rates on hold. Many expect a hike soon, but when? The RBA is wondering that too.

Australia’s economy grew by a softer-than-expected 0.4% in the September quarter, slowing from 0.6% growth in the June quarter. It confirms the recovery is tracking forward but without strong momentum. It does mean, however, that rate cuts are off the table.

As expected, the Reserve Bank of Australia (RBA) has kept the cash rate steady at 3.6%. Its board unanimously agreed it was better to “remain cautious” on interest rates.

Inflation jumped 1.3% in the September quarter, above economists’ and the Reserve Bank’s own expectations. That is likely to rule out a cut in interest rates next week. And for the foreseeable future.

The Australian economy picked up strength in the June quarter as consumers opened their wallets, boosted by interest rate cuts earlier in the year.

With the return of Donald Trump to the White House, the United States has signalled a return to aggressive tariff policies, upending economic forecasts around the world. This leaves central banks with a tricky dilemma: how to respond when inflation and global growth are being shaped by political decisions rather than economic fundamentals? Tariffs lift […]