[Reserve Bank of Australia Keeps Interest Rate Unchanged at 3.6%, Raises Core Inflation Forecast]
On November 4, the Reserve Bank of Australia (RBA) announced that it would keep the cash rate unchanged at 3.6% and projected that the core inflation rate would accelerate to 3.2% by the end of this year, higher than the current 3%. Core inflation is expected to remain above the target range of 2% to 3% until mid-2026 and may only drop to 2.6% by the end of 2027. The RBA noted that stronger-than-expected consumer demand and rising housing prices have limited the room for further rate cuts. At the same time, robust economic growth, persistent inflation, and a tight labor market indicate limited potential economic capacity. This year, the RBA has already cut rates three times in February, May, and August.