RBA Holds Cash Rate at 4.35%, Warns of Potential Future Hikes

Australia's central bank, the Reserve Bank of Australia (RBA), maintained its cash rate at 4.35% for a second consecutive meeting on August 11.

The decision was largely expected by markets, given inflation data had come in below forecasts in the second quarter and the housing market had weakened more than anticipated.

The RBA stated that it would take further action to control inflation if necessary, including increasing the cash rate target, to bring it back within its 2% to 3% target band.

Despite a slowdown in the economy, the RBA has yet to rule out further policy tightening. Governor Michele Bullock had previously indicated that a further slowdown may be required to bring inflation down.