RBA Holds Fire on Interest Rates Amid Cooling Inflation Pressures

The Reserve Bank of Australia (RBA) has left interest rates on hold at 4.35%, marking a turning point in its approach to controlling high inflation in 2026.

This decision comes after better-than-expected inflation data for June, which has given the RBA some comfort that inflation may not be as high as previously feared.

The RBA's governor, Michele Bullock, acknowledged the impact of this year's rate hikes on borrowers, saying 'I know that these increases have been tough for households with mortgages who have also been facing high inflation, but they were necessary.'

According to realestate.com.au executive manager of economics Angus Moore, the outcome for inflation over the June quarter gives the RBA a bit of comfort that inflation has not picked up as much as they were fearing.