RBA Keeps Cash Rate Steady, Leaves Future Hikes on Table

The Reserve Bank of Australia (RBA) has decided to keep the cash rate at 4.35% for now, but not ruled out future hikes if inflation remains above target.

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

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

RBA governor Michele Bullock reiterated that future hikes would remain on the table as long as inflation remained above target, saying 'We're not ruling that out, but we're saying we want to get a bit more information to confirm whether or not we still seem to be on that path.'

Economist Evgenia Dechter noted that inflation is still too high, but the economy is showing signs of a slowdown, including weak GDP growth and increasing underemployment.