RBA Holds Rates Steady at 4.35% Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has made its latest rate call, deciding to hold interest rates steady at 4.35%. This decision impacts mortgage holders and investors nationwide.

The RBA met on Monday and Tuesday of this week for its latest meeting on monetary policy, citing a desire to allow the impact of previous rate increases to flow through the economy while it assesses whether inflationary pressures are easing.

'Following three increases in the cash rate target since the beginning of the year, financial conditions are now tighter than they were, and the economy appears to be slowing as expected,' the RBA said in its decision. 'But inflation is still too high. It is not expected to return to around the midpoint of the target range until late 2027 and there are upside risks to this projection.'

The decision was unanimous, with the bank's view being that there hadn't been enough time for the previous hikes to fully work their way through the economy.