RBA Holds Cash Rate at 4.35%, Signals Future Hikes

The Reserve Bank of Australia (RBA) has maintained its cash rate at 4.35% in its August meeting, following a widely anticipated decision.

This is the second consecutive meeting where the RBA has left the cash rate unchanged, after raising it to 4.35% in May - the third rate hike this year.

The bank signalled a willingness to raise interest rates again, citing that inflation in Australia remains 'too high'.

Economists describe the decision as a 'hawkish hold', indicating that the RBA is committed to bringing inflation back within its 2-3% target range.

Financial conditions are considered 'tighter than they were', with the economy showing signs of slowing down, but the RBA remains vigilant and willing to take further action if necessary.