RBA Holds Cash Rate at 4.35%, ASX Investors Await Next Move

The Reserve Bank of Australia (RBA) has held its cash rate at 4.35%, following a recent decline in headline inflation and property prices.

The RBA's decision is significant for ASX investors, as it influences borrowing costs, economic growth, company profits, and share prices.

In June, headline inflation cooled slightly, while property prices declined more than expected. The RBA updated its inflation targets for 2026, predicting the trimmed mean to reach 3.3% by year-end and 2-3% target by early 2028.

The current cash rate remains at its equal highest point since 2011. Higher interest rates tend to favor banks and defensive sectors but put pressure on property, consumer discretionary, and highly leveraged companies due to increased borrowing costs.