RBA leaves interest rates on hold
Luca Ittimani
The Reserve Bank has left interest rates on hold at 3.6%, in a widely expected move.
Economists were confident the bank would hold today and are now parsing the RBA board’s statement for signs a fourth rate cut could still come this year.
The board has cut interest rates three times in 2025, most recently in August. Inflation has been on the rise in recent months but remains within the bank’s 2-3% target range.
We’ll bring you market reaction and more in a moment.
Photograph: David Gray/ReutersShare
Updated at 06.31 CEST
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The treasurer, Jim Chalmers, is up, addressing reporters in Canberra after the Reserve Bank held interest rates steady at 3.6%.
Even though the bank’s decision was widely expected, mortgage holders will still be disappointed that their repayments won’t be coming down for at least another month.
Chalmers acknowledged that disappointment, saying:
This is not the outcome that millions of Australian home owners would have wanted but it’s certainly the outcome that markets and economists were expecting.
The treasurer has been repeating some of his classic lines – emphasising the bank’s independence, saying that he doesn’t pre-empt its decisions and declining to comment when asked if he’s concerned it won’t bring rates down further.
He said:
I don’t engage in that kind of commentary. We’ve seen interest rates cut three times already this year.
When we came to office, interest rates were already rising. Inflation was around double what it is now and rising fast.
We’ve been able to get inflation down. We’ve seen interest rates cut multiple times. As a consequence we’ve got real wages growing. We’ve kept unemployment low.
ShareCatie McLeod
Good afternoon, I’ll take you through the rest of today’s news.
ShareNick Visser
That’s all from me! Catie McLeod will be your shepherd for the rest of the arvo. Take care.
ShareLuca Ittimani
Markets bet against rate cuts after RBA warns inflation higher than expected
The Reserve Bank board has said inflation could be higher than it predicted as the economy picks up speed faster than expected, dampening hopes for another rate cut in 2025.
The bank’s interest rate board unanimously voted to leave rates at 3.6%, saying there were signs prices were still rising too fast. In a statement accompanying its decision, the board said:
Inflation in the September quarter may be higher than expected …
With signs that private demand is recovering, indications that inflation may be persistent in some areas and labour market conditions overall remaining stable, the Board decided that it was appropriate to [hold].
The RBA is worried inflation could persist for longer than expected. Photograph: Mick Tsikas/AAP
The board judged household consumption was strengthening and taking over from government spending as the main driver of Australia’s economy, alongside business activity. It believed interest rates were low enough for those who needed to borrow.
Private demand is recovering a little more rapidly than expected … Credit is readily available to both households and businesses.
The Australian dollar rose above 66 US cents in the wake of the announcement and the Australian share market slipped, in a sign markets expect a longer wait for rate cuts.
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Updated at 07.00 CEST
Albanese says telco giant Optus has failed over its handling of recent triple zero outages
The government has asked Optus’s parent company to appoint an external reviewer to hold the company to account and to address the “serious lack of confidence” Australians have in the telco.
The communications minister, Anika Wells, met Singtel’s chief executive, Yuen Kuan Moon, the Optus chair, John Arthur, and its chief executive, Stephen Rue, in Sydney this morning.
Albanese spoke before leaving Abu Dhabi, saying:
We’re not satisfied with any of Optus’s behaviour. Optus has let down its customers, and it has let down the nation.
And there will be, of course, an investigation into how exactly this has occurred, and Minister [Anika] Wells has been very strong, as is entirely appropriate here for what is an unacceptable failure of service by Optus to its customers and to the nation.
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Updated at 06.50 CEST
RBA leaves interest rates on hold
Luca Ittimani
The Reserve Bank has left interest rates on hold at 3.6%, in a widely expected move.
Economists were confident the bank would hold today and are now parsing the RBA board’s statement for signs a fourth rate cut could still come this year.
The board has cut interest rates three times in 2025, most recently in August. Inflation has been on the rise in recent months but remains within the bank’s 2-3% target range.
We’ll bring you market reaction and more in a moment.
Photograph: David Gray/ReutersShare
Updated at 06.31 CEST
Tom McIlroy
Albanese optimistic about Aukus amid reports Pentagon will stick to pact
Anthony Albanese is sounding positive after reports the Pentagon’s review of Aukus this morning said the massive submarine project with the US and UK should go ahead.
The Japan-based Nikkei Asia reported the Trump administration would retain the original timeline for the $368bn program, which includes the US selling three Virginia-class nuclear-powered submarines to Australia from 2032.
The Australian prime minister, Anthony Albanese. Photograph: Lukas Coch/AAP
The reports come before the prime minister’s meeting with US president Donald Trump in Washington, next month.
Speaking before flying from the Middle East to Australia, the prime minister said:
Well, the Aukus review remains ongoing, but we’ve been participating very constructively with it, and Aukus has been meeting its milestones.
That is why, in discussions I’ve had with the United Kingdom and with the United States, there has been support for it.
We know that Aukus is in the interests of Australia, the United Kingdom and the United States. It is about a partnership which is in the interests of all three nations, which will make peace and security in our region so much stronger.
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Updated at 06.26 CEST
Krishani Dhanji
Australian artists urge government not to adopt data mining exemptions for AI models
Fair licensing deals are the only way for Australians to get paid fairly for their work that’s used to train AI models, Australian creatives say, calling on the government not to adopt text and data mining exemptions for generative AI models.
Over at the Senate inquiry into national cultural policy (where the productivity commission copped a flogging a bit earlier), several Australian artists and musicians have been calling for better protection for creators and their work.
Musician Holly Rankin known by her stage Jack River, told the committee copyright laws haven’t slowed creativity, but “enabled” it.
A text and data mining exception to the copyright act is not a technical tweak or small change; it would be a fundamental dismantling of our copyright system legalising the theft of Australian culture at scale.
Some of the largest companies in the world are asking for handouts from the Australian government; they want access to Australian culture and creativity for free.
Holly Rankin appears before the Senate inquiry into AI effects on Australian artists. Photograph: Mick Tsikas/AAP
Rankin said companies like OpenAI and Google have already signed licensing agreements with news organisations including NewsCorp, the Guardian and AAP.
The truth is simple, technology companies are able to pay for licenses, they just don’t want to.
First Nations rapper Adam Briggs said it would be “hard to get genie back in the bottle” if Australia allowed companies to access Australian creativity without fair pay.
Why is it a radical notion that artists should be compensated for their work?
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Updated at 06.19 CEST
Victoria premier says Vulin a person of ‘deep conviction’ and ‘immense strength’
In a statement, the premier, Jacinta Allan, said she was “shocked and deeply saddened” by Vulin’s diagnosis but proud of her work to raise awareness and funds since.
Emma has responded with grit, determination and her trademark sense of humour. She has brought our parliament together to raise awareness and funds for Fight MND and advocated for government funding for MND Victoria. That she would use her own experience to advocate for others comes as no surprise.
Emma is a person of deep conviction, immense strength and total selflessness. I am incredibly saddened that her health means she will not be able to stand for re-election in Pakenham next year. But I know she will continue to serve her community for as long as she is able.
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Updated at 06.06 CEST
Benita Kolovos
Victorian Labor MP Emma Vulin not recontesting Pakenham
Victorian Labor MP Emma Vulin has announced she won’t recontest the seat of Pakenham at the 2026 state election.
Vulin was diagnosed with motor neurone disease in 2024. In a post on social media, she said her health meant she couldn’t commit to a another four years as an MP:
My mind knows that my body may not have the energy to give what’s required to represent the Pakenham district for a further four years. Whilst I can blame motor neurone disease for taking away that possibility, I can also reflect on the insight the disease has given me and be grateful for the friendships I’ve gained.
Labor MP for Pakenham Emma Vulin. Photograph: Charlie Kinross/The Guardian
Vulin said it had been an honour to represent the community and her achievements included removing level crossings, opening two new train stations, three new schools, three new kindergartens and a new SES, with a community hospital also in the works.
I will continue to work until the November 2026 election and continue to fight hard for better outcomes, funding and infrastructure for the Pakenham District. I envision life after November 2026 will be quality time with my children and family and advocating from the sidelines, particularly for accessibility and awareness of stroke and MND.
We wrote this piece on Vulin earlier this year, as she pushed her party to introduce improved voluntary assisted dying laws:
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Updated at 05.52 CEST
RBA interest rate decision coming in an hour
The RBA will make its latest announcement on interest rates in about an hour, at 2.30pm Sydney time.
Australia’s central bank is widely expected to leave rates on hold, but we’ll bring you all the updates on that front as they happen.
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Updated at 05.37 CEST
Benita Kolovos
Victoria opposition leader says Bourke Street mall car incident sends ‘shivers’ down parents’ spines
Victoria opposition leader, Brad Battin, held a press conference at Bourke Street mall earlier – after four teens were charged over an incident in the popular shopping precinct.
The teens were charged overnight after an allegedly stolen vehicle was driven into the CBD on Monday afternoon, before it was abandoned in the middle of the mall after allegedly striking a pedestrian. Three of the teenagers were remanded in custody, with one bailed.
Brad Battin. Photograph: Nadir Kinani/AAP
Battin told reporters the community had “lost pride” in Melbourne due to increased crime. He went on:
What each and every Victorian saw yesterday during school holidays sends shivers down the spines of parents who just wanted their kids to come into what used to be a safe city here in Victoria – to come into Melbourne during your school holidays, meet under the [Flinders Street] clocks and go out with your mates in the town.
This is something that parents now fear, and what we see is empty streets because people have genuine concerns about coming into the city.
ShareKrishani Dhanji
Albanese welcomes Gaza plan and calls on parties to ‘bring its vision into reality’
Anthony Albanese welcomed the Gaza peace plan, and has urged all parties to “engage seriously” with it.
In a statement – as the PM returns from an overseas trip to the UN general assembly, the UK and UAE – Albanese said the government commends the focus on Palestinian self-determination and its commitment to denying Hamas any role in the future governance of Gaza:
We commend the plan’s focus on Palestinian self-determination and statehood, and the Palestinian Authority taking back effective control of Gaza. President Trump’s plan reflects a clear rejection of annexation and forced displacement of Palestinians.
Australia urges all parties to engage seriously with the plan and to work to bring its vision into reality without delay.
Albanese added that he “welcomed the opportunity” to discuss the plan with other leaders over the past week.
Earlier this morning, the deputy prime minister. Richard Marles, said the plan “keeps the door open” to a two-state solution and represents “hope”.
Palestinians who are struggling to access food due to ongoing Israeli attacks receive hot meals distributed by a charity organisation at Nuseirat refugee camp in Gaza City on 29 September. Photograph: Anadolu/Getty ImagesShare
Updated at 05.19 CEST
Luca Ittimani
Seven gets bigger boost than Southern Cross after merger news
Seven West Media’s shareholders enjoyed a much larger boost in value than Southern Cross Austereo’s after news of a proposed merger between the two.
Seven has jumped $15m in value to $230m, while the radio stable’s value is just $6m higher than it was yesterday, at $207.5m.
The companies told investors this morning they expected to get rid of up to $30m in annual costs by linking their assets, including combining their digital platforms, Seven Plus and Listnr.
Listnr has grown revenues by nearly a third annually, offsetting declining radio audiences and helping Southern Cross recover from its lows last year, when it was worth just $120m.
A Channel Seven logo Photograph: AAP
Southern Cross investors will see higher earnings per share under the merger, implying bigger profits and dividends, E&P Capital’s media analyst, Entcho Raykovski, said.
Seven West Media, meanwhile, reported a $61m drop in revenue in the year to June and after-tax profit nearly 20 times smaller than it recorded in 2021, with advertising revenue sliding everywhere except Seven Plus.
SWM’s share price has risen as investors weigh up the benefits of the deal to Seven against the chance they will have to sell their shares at a discount.
Seven investors would have to trade each of their shares for less than one-sixth of a Southern Cross share under the deal, which is less than their market value at current prices – a term Raykovski described as “unusual”.
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Updated at 05.09 CEST
