The Reserve Bank of Australia kept its cash rate unchanged at 3.6% at its September 2025 meeting, in line with market expectations and following a 25bps cut in August, keeping borrowing costs at their lowest since April 2023. The board noted that headline and trimmed mean inflation remained within the 2–3% range in Q2 2025, though partial and volatile data suggest Q3 inflation may be higher than expected. Meanwhile, uncertainties persist around domestic activity and inflation amid elevated global risks. There is more clarity on U.S. tariffs and other countries’ policy responses, reducing the likelihood of extreme outcomes, but trade developments are still expected to weigh on global growth. Broader geopolitical risks could also dampen aggregate demand and weaken domestic labour market conditions. Officials judged a cautious approach remains appropriate, updating their outlook as data emerge and remaining ready to respond if global developments materially affect the economy.