RBA Leaves Rates Unchanged, Another Hike Still Possible

The Reserve Bank of Australia (RBA) has left the cash rate unchanged at 4.35% as it assesses whether the three interest rate rises delivered earlier this year are doing enough to slow the economy and bring inflation back under control.

The RBA faces a difficult balancing act, with inflation remaining too high but the economy already slowing. Another immediate rate increase could put additional pressure on growth just as the effects of previous increases are becoming more visible.

Housing market conditions have eased considerably, with house prices falling in some capital cities and demand for housing credit weakening. The RBA will now be watching to see whether this slowdown spreads to the broader economy.