RBA Holds Cash Rate at 4.35% Amid Ongoing Inflation Worries

The Reserve Bank of Australia (RBA) has maintained its cash rate at 4.35% after its August meeting, marking an extension of the hold that began in June.

This decision follows a period of active monetary tightening earlier this year, with the RBA increasing rates from 3.85% in February to 4.35% by early May in response to persistent inflation pressures.

However, recent data shows that inflation has eased, but underlying price pressures remain above the target range, indicating a continued cautious approach from the RBA.

The bank is closely monitoring inflation trends, household demand, and broader economic conditions, with its next decision scheduled for September 28-29. The RBA's priority remains bringing inflation back towards the 2-3% target range without placing excessive pressure on economic activity.