6 October – 10 October 2025

Summary:

The Reserve Bank of Australia (RBA) maintained the cash rate at 3.6% during its October 2025 meeting, reflecting a cautious but constructive stance amid signs of recovery in consumption and labour markets. Governor Michele Bullock reiterated the Bank’s data-dependent approach, noting that while inflation remains within the 2–3% target band, underlying pressures persist in services and housing. The RBA provided no forward guidance, emphasizing flexibility as it awaits updated CPI and labour market data in November.

Markets have recalibrated expectations, with fewer participants now anticipating further rate cuts, following stronger-than-expected inflation data. While the RBA did not directly comment on government statements, economists acknowledge that recent inflation readings have tempered prior easing forecasts. The transition to full monthly CPI reporting by the ABS will enhance the RBA’s ability to respond swiftly to evolving inflation trends.

In her address to Parliament, Governor Bullock reaffirmed that inflation is now 2.1% headline and 2.7% trimmed mean, highlighting policy success in restoring price stability. She also underscored structural reforms from the RBA Review, including separate Monetary Policy and Governance Boards, and addressed ongoing efforts in payments modernization, cybersecurity, and digital consumer protection.

Overall, the RBA’s steady stance underscores policy stability amid cautious optimism, balancing inflation control with sustained employment and financial-system resilience.

Figure 1: Market Expectation on Cash Rate 

  • CASH ACCOUNT.xlsx

    ProductInterest
    Rate p.a.
    Notes
    AMP Saver Account4.45%To earn the bonus rate, you must grow your account balance by at least $250 (excluding interest earned) by the end of each calendar month. Applies to balances up to $500,000.
    ANZ Premium0.05%$10,000 - $249,999
    ANZ Progress Saver3.15%To earn the bonus rate, you must deposit at least $10 in one transaction and not make any withdrawals or transfers during the month.Applies to balances up to $500,000
    Arab Bank Online Savings4.55%No minimum deposit or monthly conditions to earn interest.Applies to balances up to $499,999 for the higher rate
    Bankwest Hero Saver4.00%Variable Hero rate on eligible balances up to $250,000.99.
    CBA NetBank Saver4.45%4.45% p.a. for the first 5 months (includes a 2.90% p.a. fixed bonus margin above the standard variable rate of 1.55% p.a.
    CBA Goal Saver Account4.25%4.25% p.a. when you grow your balance each calendar month (excluding interest and transactions initiated by the bank)
    Heritage Online Saver4.00%get a 4 month Bonus Intro Rate* available for new members on balances up to $100,000.
    ING Savings Accelerator4.70%To earn the bonus rate, you must deposit at least $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account, and grow the balance each month
    Macquarie CMA2.00%Interest rates vary based on account balance tiers.applies $10,000,000 and above:
    ME Online Savings3.60%Bonus interest applies to balances up to $250,000.
    NAB iSaver4.45%for the first 4 months (includes a 3.15% p.a. fixed bonus margin above the standard variable rate of 1.25% p.a.Available to new customers or those who haven't held a NAB iSaver in the last 12 months.
    NAB Reward Saver4.15%includes a 0.10% p.a. variable base rate and a 4.00% p.a. variable bonus rate).To earn the bonus rate, you must make at least one deposit on or before the second last banking day and no withdrawals.
    Rabobank PremiumSaver4.65%On balances to $250,000. Balance increased by $200 a month.
    RAMS Saver Account1.40%On balances to $500,000. Minimum $200 deposit each month with no withdrawals.
    Suncorp Growth Saver4.30%Earn 4.30% p.a. Growth Saver bonus interest each month you grow your net balance by $200 or more (excluding interest) and make no more than one withdrawal.
    ubank Save Account5.00%All you need to do is have a Spend account and deposit $500+ per month into any Spend, Bills, or Save accounts (not including internal transfers) to get the bonus interest rate. Easy.
    Up Savers Account4.30%To earn the bonus rate, you must deposit at least $200 each month and make no withdrawals.
    Westpac eSaver4.25%Fixed rate for the first 5 months for new eSaver customers.