RBA Holds Rates Steady, Warns of Potential Further Hikes

Australia's central bank, the Reserve Bank of Australia (RBA), held its cash rate steady at 4.35% for a second straight meeting on August 11, 2026.

The decision was largely as expected, given inflation data had come in under forecasts in the second quarter and the housing market had weakened more than policymakers had anticipated.

The RBA now expects inflation to ease back to its 2% to 3% target band in the second half of next year. Consumer price inflation, which peaked at 3.9% in the second quarter, is expected to ease to 3.6% by the end of the year and to 2.6% by the end of 2027.

The RBA's Governor Michele Bullock has said that a further slowdown in the economy may be required to bring inflation down.