RBA Holds Cash Rate, Warns of Inflation Risks

The Reserve Bank of Australia kept its cash rate at 4.35% in a unanimous decision, defying market expectations for a less hawkish stance.

While the Statement and updated forecasts seemed to suggest a less aggressive approach, Governor Bullock emphasized that another hike is possible if upside inflation risks materialize.

This leaves the Australian Dollar sensitive to incoming data and RBA communications, with the bar for a follow-up rate hike seemingly lifted.