NAB Reaffirms Call for Rate Hold as Economy Softens

National Australia Bank (NAB) has reaffirmed its call for the Reserve Bank of Australia to keep the cash rate at 4.35% for the remainder of 2026, citing a softening economy and housing downturn.

The bank's latest Australian Forward View report noted that the domestic economy had lost momentum in the first half of 2026, with business conditions easing back towards long-run averages after a stronger patch in late 2025.

Combined capital city dwelling prices fell for a third straight month in June, down 0.6%, the largest monthly drop since December 2022, according to NAB.

The bank expects Sydney and Melbourne to lead declines of 6-7% over 2026, with Brisbane and Adelaide also set to record price falls in July after a sharp change in momentum.