RBA Holds Rates Steady Amid Elevated Inflation

The Reserve Bank of Australia (RBA) held the official cash rate at 4.35% in its February meeting, as expected by market forecasts.

This marks the third consecutive hold since the last hike in November 2023 and reflects a cautious approach to monetary policy amid still-elevated inflation.

The RBA noted that while inflation has moderated, it remains above the 2-3% target band, with headline inflation at 4.1% in the year to December 2023.

In its accompanying statement, the RBA reiterated its commitment to bringing inflation back to target without unnecessarily harming the labour market, which remains near historic lows at 3.9%.