RBA Given More Room to Hold Rates as Inflation Eases

The Reserve Bank of Australia (RBA) has been given more room to keep interest rates unchanged after weaker-than-expected inflation figures were released.

The data shows that consumer spending and the housing market may be starting to ease price pressures across the economy, giving the RBA some breathing space.

Financial markets reacted immediately, with the implied probability of an interest rate increase in August falling from 20% to just 4%, and another rise before the end of 2026 dropping from 82% to 45%.