RBA Holds Cash Rate Amid Lower Inflation, Future Hikes Still Possible

The Reserve Bank of Australia (RBA) has decided to hold the cash rate at 4.35% for the second time this year, giving homeowners a reprieve from further mortgage pain.

This decision was widely predicted by financial experts, including those at major banks, after last month's inflation figures came in lower than expected, at 3.8% in June, above the RBA's target of between 2 and 3% but significantly lower than predicted.

RBA governor Michele Bullock reiterated that future hikes would remain on the table as long as inflation remained above target, saying 'the board is determined to ensure that expectations of higher inflation do not become embedded in price and wage setting decisions.'