The Reserve Bank has kept the cash rate on hold as was widely expected, leaving mortgage holders with just two more opportunities for further interest rate reductions in 2025.

The decision leaves the official cash rate at 3.6 per cent .

The Reserve Bank board said it was appropriate to remain cautious and it would wait for further evidence that inflation was continuing to ease.

Hopes for a September rate cut were quashed earlier this month when updated inflation figures were released, showing inflation in some areas of the economy had re-accelerated.

The consumer price index rose 3 per cent for the year to August, up from 2.8 per cent the month before and its highest level in more than a year, the Australian Bureau of Statistics reported.

However, the Reserve Bank has consistently

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