RBA Holds Fire on Rate Hike as Inflation Fears Persist

The Reserve Bank of Australia (RBA) has held its benchmark interest rate at 4.35% for another month, despite stubborn inflation pressures.

The decision was met with no surprise from market economists, who had been expecting the RBA to maintain its current cash rate target.

The central bank noted that while headline inflation has moderated, underlying core inflation remains significantly above the RBA's 2-3% target band.

The main culprit behind this persistent inflation is the services sector, which continues to drive up costs for consumers and businesses alike.