RBA Expected to Keep Cash Rate Unchanged at August Meeting

The Reserve Bank of Australia (RBA) is expected to keep the cash rate at 4.35 per cent at its August meeting, with softer inflation figures and a pause in interest rate hikes anticipated by all four major banks.

According to Westpac chief economist Luci Ellis, the June inflation outcome was less concerning than initially anticipated, removing the case for further near-term tightening.

The bank had previously forecast two 25-basis-point rises in August and September, but now expects an extended hold position due to the moderation in headline CPI from 4 per cent in May to 3.8 per cent in June.