Red-hot inflation signals the RBA may be done cutting rates

Bond traders have slashed their expectations for further interest rate cuts in Australia after an unexpectedly hot monthly inflation number signalled to some in the market that the central bank could be done with lowering borrowing costs this cycle.

The Australian dollar spiked above US66¢ and bond yields jumped after the consumer price index ticked up to 3 per cent in August from 2.8 per cent, topping economists’ expectations of 2.9 per cent. This was the fastest pace in more than a year.

Source: https://www.afr.com/markets/debt-markets/red-hot-inflation-signals-the-rba-may-be-done-cutting-rates-20250923-p5mxdl