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.

While borrowers may have been hoping for rate relief, the decision came as little surprise to economists and markets, after stronger-than-expected inflation data – something the board’s statement emphasised, along with local and global uncertainty.

“Inflation has fallen substantially since the peak in 2022 […] but more recently, inflation has picked up,” the board noted, describing the September quarter figures released last week as “materially higher than expected”.

For many mortgage holders, this marks another month of frustration. Three rate cuts earlier this year offered some respite, but not enough to offset the sharp rise in interest rates since the tightening cycle began in mid-2022.

There is another RBA meeting in early December. But today’s board statement suggest borrowers have longer to wait for any further relief.

Financial markets and the major banks share the RBA’s cautious tone. The big four banks were already expecting the next rate cut

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