RBA Keeps Rates Unchanged, Signals Possible Further Tightening

The Reserve Bank of Australia (RBA) kept its cash rate unchanged at 4.35% for a second straight meeting, citing that economic slowdown is in line with expectations.

Australia's Q2 inflation was weaker than expected, contributing to the RBA's decision to hold rates steady this month.

Despite some board members favoring further tightening after three rate hikes since January 2026, Governor Michele Bullock signaled a possibility that rates may need to go up again due to rising energy costs and inflation risks.