RBA Holds Cash Rate at 4.35% Amid Hawkish Stance

The Reserve Bank of Australia (RBA) has decided to hold the official cash rate at 4.35 per cent in a unanimous decision during its August monetary policy meeting.

Markets had pencilled in a 97 per cent chance of 'No Change' in the official cash rate, as shown by the ASX Rate Tracker on August 10, 2026.

The RBA's Statement on Monetary Policy highlighted that disruptions to global oil supply are adding direction to inflation and higher fuel prices are being passed through to other goods and services, keeping inflation high for some time.

Board members stated that growth in aggregate demand needs to remain subdued to reduce capacity pressures and bring inflation back to target. Despite the economy appearing to be slowing as expected, inflation remains too high, not expected to return to around the midpoint of the target range until late 2027.