RBA Keeps Cash Rate Unchanged Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has kept the cash rate at 4.35 per cent, following last month's inflation figures that came in lower than expected.

The RBA had predicted a second hold on the cash rate after the June consumer price index (CPI) was revealed to be 3.8 per cent, above its target of between 2 and 3 per cent but significantly lower than anticipated.

RBA governor Michele Bullock stated that while inflation is still above target, the board wants more time to assess whether the economy is evolving as expected. The RBA predicted that inflation will remain above target until late 2027.