RBA Keeps Cash Rate Steady Amid Continued Inflation Concerns

The Reserve Bank of Australia has decided to keep the cash rate at 4.35 per cent, marking a second hold on interest rates in as many months.

The decision comes after the June inflation figures came in lower than expected, with the consumer price index (CPI) at 3.8 per cent.

Reserve Bank governor Michele Bullock has reiterated that future rate hikes are still on the table if inflation remains above target.

Bullock stated that the board is 'determined to ensure that expectation of higher inflation do not become embedded in price and wage setting decisions.'

Associate professor of economics at the University of NSW Evgenia Dechter said the easing in the economy presents an opportunity for the RBA to wait and see before committing to more changes to the cash rate.