The Australia 200 trades 86 points (-0.98%) lower at 8809 at 3.30pm AEDT.
ASX 200 hits five-week low ahead of RBA meeting
The Australia 200 (ASX 200) dived 92 points (1.03%) to an almost five-week low of 8802.40 today, with most of the falls coming ahead of this afternoon’s Reserve Bank of Australia (RBA) Board meeting where, as expected, the RBA kept its official cash rate on hold at 3.60%.
The RBA noted that while inflation has fallen substantially since its 2022 peak, it has picked up recently, prompting it to revise higher its forecast for trimmed mean inflation to 3.2% (from 2.6%) during the first half of 2026.
Cash rate path offers hope for mortgage holders
The bank also revised up its growth and unemployment forecasts. Offering a glimmer of hope to mortgage holders, the RBA’s updated cash rate path assumes the cash rate falls to 3.30% in the second half of next year. While this is above its 2.9% forecast from August, it leaves the door open to further easing if warranted.
