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Australia's central bank holds rates, cautious on inflation

BY Reuters | ECONOMIC | 09/30/25 12:36 AM EDT

SYDNEY, Sept 30 (Reuters) - Australia's central bank on Tuesday left its cash rate steady as expected at 3.60%, saying recent data suggested inflation might be higher than forecast in the third quarter and the economic outlook remained uncertain.

Wrapping up a two-day policy meeting, the Reserve Bank of Australia said the board judged it was appropriate to remain cautious on policy, but was well placed to respond to international developments.

Markets had seen scant chance of a further easing this week following a quarter-point cut in August, while a high reading on monthly consumer prices had argued for waiting for the full third-quarter inflation report due in late October. (Reporting by Wayne Cole; Editing by Jacqueline Wong)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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