RBA Keeps Cash Rate Steady Amid Brighter Inflation Outlook

The Reserve Bank of Australia (RBA) has maintained its cash rate at 4.35% in a unanimous decision, following a review of inflation and unemployment projections.

Inflation is expected to slow down more quickly than previously thought, with trimmed-mean inflation projected to reach 3.3% by December 2026, down from 3.5% in May.

The RBA also increased its unemployment projection for December to 4.5%, up from 4.3%. The bank has left the door open to further rate hikes if inflation risks escalate.

The decision comes after three interest rate hikes this year, which have contributed to a slowdown in economic activity and put downward pressure on housing prices.