RBA Keeps Rates Steady Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) left interest rates steady at 4.35% as expected on Tuesday, despite some recent signs of cooling inflation.

However, the central bank warned that price pressures still remain high and could lead to further rate hikes in the near term.

The RBA cut its inflation forecasts for end-2026, with CPI inflation now seen at 3.6%, down from earlier estimates of 4.0%.

The central bank attributed the cooling inflation to softer-than-expected print for the second quarter, but warned that fuel prices remain a major driver of price pressures.