RBA Holds Cash Rate at 4.35 Per Cent Amid Ongoing Housing Market Uncertainty

The Reserve Bank of Australia (RBA) has made its fifth cash rate decision of the year, choosing to hold the official cash rate at 4.35 per cent. This move follows three consecutive hikes in February, March, and May.

In a unanimous decision, the RBA cited tightening financial conditions and signs that the economy is slowing as a result of previous rate hikes. The central bank also noted a shift in momentum across the housing market, with housing prices falling in some capital cities and new housing loans declining noticeably.

While inflation remains above the 2-3 per cent target band, the RBA acknowledged that it will take time for inflation to return to its target range. The board warned of upside risks to this projection and stated that it will continue to do what is necessary to bring inflation sustainably back to target.