RBA Holds Steady as Inflation Eases and Labor Market Loosens

The Reserve Bank of Australia (RBA) has decided to keep its key rate unchanged at 4.35% after its August meeting, citing signs that elevated inflation is easing and the labor market beginning to loosen.

The RBA's minutes showed a solid debate on whether to hike or hold rates, with some members arguing it was best to pause and wait for additional information before making a decision.

A majority of economists predict the RBA board will stand pat for the remainder of the year, while money markets are pricing about a 60% chance of another hike by year-end.