RBA Keeps Rates Steady, But Hints at Further Hikes Ahead

The Reserve Bank of Australia (RBA) has kept its cash rate steady at 4.35% for the second consecutive meeting, but Governor Michele Bullock hinted that another hike is possible if needed to control inflation.

Bullock stated that it's 'quite possible' rates may need to increase again, keeping alive the risk of a fourth rate rise this year.

The RBA has already raised rates by 75 basis points in 2023, fully reversing the policy easing from 2025, as it struggles to contain stubborn inflationary pressures driven by surging energy costs.

Bullock emphasized that the economy is slowing as expected, but said they would raise rates again if necessary to bring inflation back to target, which is between 2% and 3%.