RBA Holds Cash Rate Steady Amid Waning Inflation Concerns

The Reserve Bank of Australia (RBA) has maintained its cash rate at 4.35% in its latest decision, despite concerns about elevated inflation.

According to the RBA, the decision was widely expected, but a fourth hike this year remains on the table as the central bank attempts to bring inflation back down to its target range of 2-3% without triggering a significant rise in unemployment.

Inflation eased to 3.8% in June, below the 4.8% rate predicted by the RBA earlier this year.

RBA governor Michele Bullock has also stated that house prices have been falling faster than expected, with Westpac blaming interest rate rises for a 20% fall in home lending since May.