Story perspectives
Australia's Economy Near Capacity: Rate Cuts Unlikely Ahead
11/10/2025
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Story summary
- Reserve Bank of Australia Deputy Governor Andrew Hauser says the economy is near full capacity with limited spare capacity.
- This limits potential for further rate cuts, while the cash rate remains at 3.6%.
- Inflation is rising, and is expected to stay above the target until mid-2026.
- Hauser urges higher productivity and investment to avoid stagnation ahead of the December 9 rate decision.
