RBA Keeps Cash Rate Steady Amid Lower Inflation Figures

The Reserve Bank of Australia (RBA) has decided to keep the cash rate at 4.35 per cent, giving home owners a reprieve from further mortgage pain.

This decision was widely predicted by financial experts, including those at all four major banks, after last month's inflation figures came in lower than expected.

The consumer price index (CPI) was 3.8 per cent in June, above the RBA's target of between 2 and 3 per cent, but significantly lower than had been predicted.

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