Forex

RBA Holds Rates Steady Amid Ongoing Inflation Concerns

Guavy AI Editorial Team Published August 12, 2026

Instruments

AUD

The Reserve Bank of Australia (RBA) has decided to hold the official cash rate at 4.35% for its second meeting in a row, leaving the possibility of future hikes on the table.

RBA Governor Michele Bullock emphasized that bringing inflation down is the central bank's top priority, and she noted that high inflation hurts all Australians, especially the most vulnerable.

Bullock stated that the board will raise rates further if needed to bring inflation within its target range of 2% to 3%, which it forecasts will occur by the end of 2027.

The RBA's decision was driven by a desire to give previous rate increases time to work through the economy and see whether they're taking some heat out of inflation.

Inflation remains a concern, with the latest consumer price index (CPI) coming in at 3.8% in June, higher than the target band.

RBA Holds Rates Steady Amid Ongoing Inflation Concerns

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