RBA Leaves Rates Unchanged, Warns of Possible Further Hikes

The Reserve Bank of Australia (RBA) has left interest rates unchanged at 4.35 per cent, but hinted that further hikes may be necessary to control inflation.

In its latest policy decision, the RBA cited falling house prices and lower-than-expected inflation as reasons for keeping rates steady.

RBA Governor Michele Bullock warned that both headline and underlying inflation remain above the bank's 2-3 per cent target range, with new forecasts showing inflation is expected to stay above 2.5 per cent until early 2028.

Bullock emphasized that the RBA would not rule out further interest rate rises if upside risks to inflation materialize.