RBA Keeps Rates Steady but Warns Further Hike Possible Amid Ongoing Inflation Concerns

Australia's central bank held its cash rate steady at 4.35% for a second straight meeting, citing slowing economic growth and subdued aggregate demand.

Reserve Bank of Australia governor Michele Bullock struck a hawkish tone during the post-meeting press conference, stating that it was 'quite possible' rates may need to increase again to control inflation.

The RBA has already raised rates by 75 basis points this year, fully reversing policy easing from 2025. The bank warned it would do what's necessary to bring inflation back to target, including increasing the cash rate further if upside risks materialise.