RBA Holds Rates at 4.35%, Maintains Hawkish Stance

The Reserve Bank of Australia (RBA) has maintained its cash rate at 4.35%, a unanimous decision that reflects the central bank's cautious stance on inflation.

The RBA had previously raised interest rates three times in 2026, and the current hold is seen as a signal that the terminal rate may be in place.

However, the accompanying statement highlighted the risks of upside inflation, with the Board stating it will lift the cash rate again if these risks materialise.

This conditional bias keeps policy tilted towards further tightening rather than easing, capping optimism for rate cuts in 2027.