RBA Expected to Hold Interest Rates Amid Falling Inflation

The Reserve Bank of Australia (RBA) is expected to keep interest rates steady at 4.35% when its board meets on Monday and Tuesday, providing relief for mortgage holders.

Economists are forecasting that Governor Michele Bullock and the RBA's board will leave the cash rate unchanged following a surprise fall in inflation from 4% to 3.8% in June.

NAB senior economist Taylor Nugent said the RBA would likely follow market forecasts and keep rates on hold, citing lower-than-expected unemployment and underlying inflation.

HSBC chief economist Paul Bloxham also expects a wait-and-see approach from the RBA, but warns that inflation risks remain elevated despite being above target.