RBA Holds Cash Rate Steady Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has decided to hold the official cash rate at 4.35%, giving mortgage holders some relief after three rate increases this year.

The decision was unanimous and widely anticipated by economists and financial markets, with the RBA balancing signs of slowing economic and housing activity against inflation that remains above its 2%-3% target range.

The central bank said inflation was still 'too high' and was not expected to return to around the midpoint of its target band until late 2027.

'The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise,' the RBA said.