RBA Holds Key Rate Steady Amid Inflation Concerns

The Reserve Bank of Australia (RBA) maintained its cash rate at 4.35% in a unanimous decision, as expected by market analysts.

Policymakers noted that financial conditions have tightened following three interest rate hikes earlier this year.

Inflation remains high, with capacity pressures and higher oil prices contributing to the increase in the second half of 2025. Higher fuel costs are also affecting other goods and services.

The RBA expects inflation to remain elevated and return to around the midpoint of its target range in late 2027, citing upside risks.