In a widely expected move the Reserve Bank of Australia (RBA) has held interest rates.

Australia’s official cash rate remains steady at 3.60%.

The nation’s central bank met Monday and Tuesday this week to discuss monetary policy. The board cited rising inflation as the key driver for its decision.

The RBA has slashed rates three times so far in 2025, February, May, and August but held off at its meeting in September, citing higher-than-expected inflation and continued economic uncertainty, both at home and abroad, for the decision.

At the time, RBA Governor Michele Bullock reiterated the central bank’s wait-and-see approach, opting to wait on incoming data before making further decisions on monetary policy. That would include the need for inflation to stabilize within the RBA’s 2% to 3% target range before further easing could occur.

But data from the September quarterly consumer price index (CPI) didn’t help. In fact, the latest print showed that inflation was rising Down Under faster than expected, with both headline CPI and the annual trimmed mean inflation rates trending up.

CPI was up 1.3% in the three months leading up to September, compared with June’s quarterly reading of an increase of just 0.7%. For the year leading up to September, the CPI climbed to 3.2%, up from 2.1% in June.

Meanwhile, the trimmed mean annual inflation, which measures underlying inflation by stripping out goods with volatile prices changes and what many consider a better indicator of inflationary pressures, rose to 3% in September, up from 2.7% during the June reading.

That was the first time in nearly three years since December 2022, that the trimmed mean annual inflation has risen. The rising inflationary figures are also outside of the RBA’S target inflation range.

Changes in monetary policy would have come as a welcome relief to mortgage holders and investors alike, many of whom are grappling with rising living costs, surging property prices and a persistent housing shortage.