RBA Holds Cash Rate at 4.35%, Future Hikes Still on Table

The Reserve Bank of Australia (RBA) has held the cash rate at 4.35% for the second consecutive time, providing relief to homeowners who had been facing further mortgage pain.

According to RBA Governor Michele Bullock, the decision was widely predicted by financial experts, including those at major banks, following lower-than-expected inflation figures in June.

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

Bullock emphasized that future hikes to the cash rate remain on the table as long as inflation remains above target, citing a number of economic factors including falling house prices and a softening labor market.