RBA Holds Cash Rate, Warns of Future Hikes

The Reserve Bank of Australia (RBA) has announced that it will not raise the cash rate again, at least for now. The decision was widely expected by financial experts after last month's inflation figures came in lower than predicted.

The consumer price index (CPI) rose 3.8 per cent in June, above the RBA's target of between 2 and 3 per cent, but significantly lower than had been forecasted.

RBA governor Michele Bullock reiterated that future hikes remain on the table as long as inflation remains above target. 'The board is determined to ensure that expectation of higher inflation do not become embedded in price and wage setting decisions,' she said.