Markets still see chance of September rate cut, defying the data

While an interest rate cut from the Reserve Bank of Australia is widely expected to be off the table in September after this week’s hot inflation number, the market and some economists still reckon there’s a chance.

The central bank has already cut the policy rate three times this year to 3.6 per cent after inflation returned to its 2 to 3 per cent target and has hinted that there is more to come. But an unexpectedly sharp jump in consumer prices to an annual pace of 2.8 per cent last month has given the market pause for thought.

Source: https://www.afr.com/markets/debt-markets/markets-still-see-chance-of-september-rate-cut-defying-the-data-20250828-p5mqin