RBA Holds Fire on Interest Rates, Warns of Further Hikes Ahead

The Reserve Bank of Australia (RBA) has held interest rates at 4.35% in its latest decision, but analysts warn that this may not be cause for celebration.

While the RBA's Statement on Monetary Policy suggests that inflation has peaked and is expected to ease from 3.8% to 3.6% by the end of the year, the bank's outlook remains cautious.

RBA Governor Michele Bullock emphasized that 'inflation is still too high' and that the bank will continue to monitor the situation closely, warning that rates may need to be raised again if inflation exceeds expectations.

This decision comes as no surprise, given the RBA's previous rate hikes this year and its focus on keeping inflation within its 2-3% target range.