By Devayani Sathyan

BENGALURU (Reuters) -The Reserve Bank of Australia will keep its key interest rate unchanged at 3.60% on Tuesday as an inflation spike delays policy easing, according to economists in a Reuters poll who now expect the next and final rate cut in the cycle in 2026.

Annual consumer price inflation jumped to 3.2% in the September quarter, above the top of the RBA’s 2%–3% target band, driven by higher power and services costs.

The RBA’s preferred core measure climbed 1.0% in the quarter, well above its forecast of near 0.6%. Governor Michele Bullock said on Monday even a 0.9% rise would be a “material miss” the board would need to weigh when deciding policy.

The stronger-than-expected reading has effectively shut the door on any near-term rate cuts and cast doubt on how

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