RBA Holds Rates Steady Amid Warnings of Further Hikes

The Reserve Bank of Australia (RBA) maintained its cash rate at 4.35% for a second consecutive meeting, citing a slowing economy as expected. Inflation remains a concern, with policymakers warning that further hikes may be necessary if upside risks materialise.

Markets had predicted a steady outcome due to underwhelming inflation data in the second quarter and a weaker-than-expected housing market.

The RBA stated it will do what's necessary to bring inflation back within its 2% to 3% target band, including increasing the cash rate if needed.