RBA Interest Rate Hike on Hold as Inflation Figures Soar

The Reserve Bank of Australia (RBA) may hold off on another interest rate hike in August, following the release of lower-than-expected inflation figures.

Australian Bureau of Statistics data show headline inflation slowed to 3.8% in the year to June 2026, down from 4% in May.

The annual rate of trimmed mean inflation, the RBA's preferred measure of underlying inflation, remained at 3.6%, defying expectations it would rise again.

While some economists now expect the RBA to hold the cash rate steady, others caution that inflation is moderating too slowly to rule out another rate increase.