Australian Bond Exchange Weekly Update
24th November 2025
Key Points
- Australia: The Reserve Bank of Australia (RBA) left the cash rate unchanged at 3.60% p.a. at its November meeting. The quarterly CPI for September gained 3.2% (YoY). The annual trimmed mean inflation in Australia, a key underlying inflation gauge used by the Reserve Bank of Australia, rose to 3.0% in the year to the September 2025 quarter, up from 2.7% in the June quarter.
- United States: The Federal Reserve cut its target cash rate by 0.25% to 3.75%–4.00%p.a. September headline inflation was 3.0% (YoY), up from 2.9% in August.
- United Kingdom: The Bank of England (BoE) held interest rate steady at 4.00% p.a. at its November meeting. The September inflation stood at 3.8%(YOY).
- Eurozone: The European Central Bank (ECB) has maintained its deposit rate at 2.0% p.a. Inflation in September increased slightly to 2.2%(YoY) – up from 2.0% in August.
Here are the latest monetary‑policy and inflation figures for key economies:
| Region | Policy Rate | Latest Inflation (YoY) |
|---|---|---|
| Australia | Cash rate 3.60% p.a. (Reserve Bank of Australia, November 2025) | 3.2% to September 2025 (quarterly CPI indicator) |
| United States | Policy range 3.75–4.00% p.a. (Federal Reserve cut 0.25% on 29 October 2025) | 3.0% to September 2025 (CPI) |
| United Kingdom | Bank rate 4.00% (Bank of England) | 3.8% to September 2025 |
| Eurozone | Deposit facility rate 2.00% p.a. (European Central Bank held 11 September 2025) | Headline inflation ~ 2.1% (ECB projected average for 2025) |
Market Insights
- A new wholesale investment opportunity
- No Quick Cuts: RBA Stays Cautious Amid Sticky Inflation
- Future Fund Braces for an Era of Stubborn Inflation
No Quick Cuts: RBA Stays Cautious Amid Sticky Inflation
The Reserve Bank of Australia has signalled it remains cautious about further interest rate cuts, emphasising that any easing would depend strongly on incoming data. In its recent board minutes, the RBA noted that, although policy is “probably still a little restrictive”, there is considerable uncertainty around how restrictive it really is. The board identified scenarios that could justify cuts, including a materially weaker labour market or a significant pull-back in household spending, but stopped short of committing to further easing unless conditions deteriorate in a substantial way.
Future Fund Braces for an Era of Stubborn Inflation
The Future Fund, Australia’s $250 billion investment powerhouse, has recently emphasised that global markets are entering a period of deeper uncertainty. In response, it is redesigning its portfolio to focus on resilience rather than traditional assumptions about interest rates, inflation, and geopolitical stability. The leadership has warned that persistent geopolitical tensions and shifting policy regimes could keep inflation higher for longer, sustaining elevated bond yields.
A new wholesale investment opportunity is scheduled
to be made available
The Zagga Group is issuing new Senior Secured Note to replace the existing one which expires at the end of November (indicative terms for the new Note are BBSW+4.20% p.a. coupon, for 4 years. wholesale clients only).
Zagga was established in 2016 and is a leading Australian alternative real estate investment manager committed to delivering attractive, risk-adjusted investor returns, and tailored private credit solutions, across the capital stack.
Zagga provides lending primarily in Australian capital cities and nearby regional areas. Its portfolio has a strong presence in greater Sydney, with additional activity in Melbourne and other eastern seaboard markets.
Zagga has originated over 300 loans for $2.3bn+, with only 6 enforcements and over 200 successful exits, resulting in a full return of investor capital. Loans are secured by first registered mortgages over non-specialised property assets.
These may includes:
- Land intended for residential use
- Completed apartments
- Generic commercial real estate
- Construction and development loans
For further information about this opportunity, speak with your financial adviser.
*Data accurate as at 24.11.2025
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