RBA Keeps Cash Rate at 4.35% as Inflation Cools Slightly
The Reserve Bank of Australia (RBA) held its cash rate at 4.35% on August 11, 2026, as trimmed-mean inflation eased to 3.6%. This decision means mortgage holders will continue to pay the same interest rates they have since June, when the cash rate was raised from 4.10% to 4.35%.
According to Commonwealth Bank's head of Australian economics, Belinda Allen, the earliest realistic window for another hike is November. This is because the board will want September-quarter data before judging whether July's jump in oil prices has fed into core inflation.
The RBA's decision is not surprising, given that trimmed-mean inflation and headline CPI are still above the 2 to 3% target band. The bank's governor, Michele Bullock, keeps the door open to hikes, indicating that the fight against inflation is not yet won.