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RBA Holds Rates Steady Amid Shifting Market Expectations

10/7/2025

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Story summary
  • The Reserve Bank of Australia held the cash rate at 3.6%, citing slow inflation and data dependency for future decisions.
  • Westpac adjusted rates independently, signaling tension between policy and banking strategy.
  • Markets price 40% chance of a November cut, down from 76% two weeks ago.
  • National Australia Bank (NAB) expects next cut in May 2026, others foresee early 2026.