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RBA Poised for Rate Cuts Amid Mixed Jobs Data

9/20/2025

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Story summary
  • The Reserve Bank of Australia (RBA) is expected to implement gradual rate cuts in 2025, with a 75% probability for a cut in November.
  • Economists from Westpac and Commonwealth Bank find the latest jobs data mixed, suggesting no immediate need for rate changes.
  • The unemployment rate remains stable at 4.1%, despite a loss of 5,400 jobs in August.
  • Inflation increased to 2.8% year-over-year in July, the highest since July 2024, complicating RBA policy.
  • Australia's 10-year government bond yield fell to 4.23%, indicating market expectations for further rate cuts.