RBA Holds Interest Rates Steady Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has kept interest rates steady at 4.35% for a second consecutive meeting, as expected by economists and money markets.

Inflation remains above the RBA's target range of 2-3%, but the bank's preferred measure of inflation, the quarterly trimmed mean, came in lower than forecast at 3.6% in the June quarter.

The RBA still expects inflation to remain above 2.5% until early 2028, and is keeping a close eye on the housing market, which is rapidly deteriorating due to falling house prices and reduced tax concessions for property investors.