RBA Keeps Interest Rates Steady Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has kept interest rates steady at 4.35 per cent for a second consecutive meeting, despite inflation remaining above its target range.

Reserve Bank governor Michele Bullock hinted that the door is still open to future rate hikes, as the central bank's preferred quarterly trimmed mean measure of inflation came in lower than expected at 3.6 per cent in the June quarter.

Economists and money markets had widely anticipated the decision to leave rates on hold, following softer-than-expected inflation figures in late July that killed off expectations of an August rate hike.

The RBA's economic forecasts indicate that it still expects inflation to remain above 2.5 per cent until early 2028, while also noting a rapidly deteriorating housing market could weigh on household consumption and further slow the economy.