RBA Holds Rates Steady Amid Housing Market Slowdown

The Reserve Bank of Australia (RBA) has decided to leave the cash rate unchanged at 4.35% as it assesses whether the three interest rate rises delivered earlier this year are doing enough to slow the economy and bring inflation back under control.

Inflation remains too high, but the RBA notes that there are clearer signs that higher interest rates are slowing growth, particularly in housing, consumer spending, and the jobs market. The central bank said it will continue to monitor how the economy evolves before making further decisions.

The RBA highlighted the shift in momentum in the housing market, with house prices falling in some capital cities and new housing loans declining noticeably. This weakness could potentially spill over into broader household spending and economic activity, which may affect the need for further rate hikes.