RBA Holds Cash Rate at 4.35% Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) maintained its official cash rate at 4.35% in February, marking the third consecutive hold since November 2023.

This decision aligns with market forecasts and reflects a delicate balancing act between easing inflationary pressures and a resilient but slowing domestic economy.

The RBA noted that while inflation has moderated, it remains above the 2-3% target band, with headline inflation at 4.1% in the year to December 2023, and underlying inflation at 4.2%.

The central bank reiterated its commitment to bringing inflation back to target without unnecessarily harming the labour market, which is currently near historic lows at 3.9%.