RBA Warns Inflation Still Too High Amid Rate Hold

The Reserve Bank of Australia (RBA) kept its official cash rate at 4.35% in a widely expected move, but warned that inflation remains too high.

In a statement accompanying the decision, the RBA noted that inflation picked up materially in the second half of 2025 and has continued to rise this year.

The RBA acknowledged that the three rate hikes this year have helped slow consumer spending and demand, as well as home prices, but emphasized that growth remains strong.

The bank also highlighted ongoing capacity pressures and a recent increase in fuel prices due to global oil supply disruptions, which it expects will keep inflation elevated for some time.