Data clash! With the neutral interest rate lowered and the tightening job market, the Reserve Bank of Australia is caught in a dilemma.

date
18/09/2025
According to the financial news app, it was learned that internal documents disclosed on Thursday under the "Freedom of Information Act" showed that the neutral cash rate model of the Reserve Bank of Australia (RBA) indicates that its estimated value will be "significantly reduced", and that the labor market is tighter than previously expected. The downward revision of the estimated value suggests that the RBA's benchmark interest rate may need to be lower than previously expected to help the bank achieve its mission. However, the tighter than expected labor market may mean that more stringent policies need to be implemented.