RBA Keeps Cash Rate at 4.35% Amid Stubbornly High Inflation

The Reserve Bank of Australia (RBA) has decided to keep the official cash rate unchanged at 4.35 per cent, citing inflation as its primary concern.

In a unanimous decision, the RBA Board stated that while the economy is slowing as expected and monetary policy is already restrictive, inflation remains stubbornly high and will continue to be a major focus for policymakers.

The RBA noted that inflation has picked up significantly in the second half of 2025, with recent data confirming stronger-than-expected capacity pressures within the Australian economy contributing to higher prices.