In September 2025, the Reserve Bank of Australia (RBA) kept the cash rate steady at 3.85%, despite ongoing speculation of a cut. The Bank remains cautious, signalling that while lower rates are likely in time, they are waiting for clearer evidence that inflation and labour market pressures are under control. The broader economy grew by 0.2% in the June quarter, down from 0.6% in March, leaving annual growth at 1.3%. On a per capita basis, GDP fell again, marking the ninth decline in the past eleven quarters and confirming that households are still feeling the squeeze of slower growth and higher living costs.
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