RBA Holds Cash Rate Amid Signs of Economic Slowdown

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

This decision was widely predicted by financial experts, including those at all four major banks, following last month's inflation figures coming in lower than expected.

The consumer price index (CPI) was 3.8% in June, above the RBA's target of between 2 and 3%, but significantly lower than had been predicted.

RBA governor Michele Bullock has reiterated that future hikes would remain on the table as long as inflation remained above target.