RBA Predicts Cash Rate Hold Amid Softer Inflation Figures

The Reserve Bank of Australia (RBA) is expected to keep the cash rate at 4.35 per cent in August, according to major banks including Westpac, ANZ, Commonwealth Bank of Australia (CBA), and National Australia Bank (NAB).

This prediction comes after softer-than-expected June inflation figures, which showed annual headline inflation easing to 3.8 per cent from 4 per cent in May.

Westpac chief economist Luci Ellis said the inflation outcome was less concerning than both the bank and the RBA had initially anticipated, removing the case for further near-term tightening.

CBA also stated that the June result suggested higher input costs were not translating broadly into consumer prices.