RBA Holds Cash Rate at 4.35 Per Cent Amid Challenging Market Conditions

The Reserve Bank of Australia (RBA) has held its official cash rate at 4.35 per cent, marking the second time this year it has opted to do so.

This decision comes after three consecutive hikes in February, March, and May, and follows a broadly expected hold by major banks forecasting a gradual easing towards the latter half of 2027.

The RBA cited tighter financial conditions and a slowing economy as reasons for the hold, while acknowledging that inflation remains above its 2-3 per cent target band.

According to Equifax data, Australian mortgage demand has fallen for the fourth consecutive month, with overall demand down 16.4 per cent year on year in July.