RBA Holds Cash Rate at 4.35 Per Cent Amid Ongoing Economic Uncertainty

The Reserve Bank of Australia (RBA) has maintained its official cash rate at 4.35 per cent, opting for a wait-and-see approach as it assesses the impact of recent rate hikes on inflation and economic growth.

In its latest policy decision, the RBA board cited lower-than-expected June inflation data as a key factor in its decision to hold rates steady.

The central bank emphasized that while financial conditions have tightened following three consecutive cash rate increases since February, the economy is slowing broadly in line with expectations.

RBA's focus remains on ensuring high inflation does not become embedded, and it warned that prices remain above target, unlikely to return to mid-target levels until late 2027.