RBA leaves cash rate steady at 3.60%, issues update on inflation risk and domestic demand in 2025’s last policy meeting; how much has the Australian dollar moved?

The Reserve Bank of Australia (RBA), Australia's central bank, left the cash rate at 3.60 per cent on Tuesday (December 9, 2025), keeping it steady in line with the expectations of economists. As the RBA announced its decision, it noted that risks to inflation had tilted to the upside, according to Reuters. The central bank, however, also signalled that despite the anticipated risk, it was in no hurry to tighten monetary policy.

Governor Michele Bullock said that the RBA is likely to keep rates on hold or deliver a hike in 2026, with no rate cut on the horizon for the foreseeable future, according to ABC News. Concluding the last policy meeting of 2025, the RBA also stated that the domestic demand had been stronger than expected and could add to capacity pressures.

According to Reuters, markets had seen no chance of easing this week following a run of hot data on inflation, economic growth and household spending.

Australian dollar sees little change

The Australian dollar was little changed immediately after the statement but started moving higher after Bullock ruled out any further rate cuts at a post-policy press conference. Bullock said if inflation appears to be persistent, it will raise some questions on policy.

The Aussie was slightly higher at $0.6639, while three-year government bond yields were up a touch. "The recent data suggest the risks to inflation have tilted to the upside, but it will take a little longer to assess the persistence of inflationary pressures," the board said in a statement, as quoted by Reuters.

"There are uncertainties about the outlook for domestic economic activity and inflation and the extent to which monetary policy remains restrictive," the statement further stated.