RBA Keeps Rates Steady Amid Inflation Risks

The Reserve Bank of Australia (RBA) kept its benchmark interest rate unchanged at 4.35 percent for the second straight policy gathering on August 11, 2026.

In a unanimous decision, the RBA left the cash rate steady despite cautioning that an additional increase remained possible if price pressures demanded it.

The bank emphasized its focus on ensuring that elevated inflation did not become entrenched and noted that growth in overall demand needed to remain restrained to ease capacity constraints and return inflation to target.

The RBA has already increased rates by 75 basis points this year, fully unwinding the easing measures introduced in 2025, as it contended with persistent price pressures fueled by soaring energy costs.