RBA Keeps Cash Rate Target Unchanged at 4.35 Per Cent

The Reserve Bank of Australia Monetary Policy Board has unanimously decided to leave the cash rate target unchanged at 4.35 per cent. Financial conditions have tightened following three rate increases earlier this year, and consumer spending growth is slowing. Housing market momentum has also shifted, with housing prices falling in some capital cities and new housing loans declining noticeably.

However, the Board noted that inflation remains too high and is not expected to return to the midpoint of its target range until late 2027. Global oil supply disruptions and capacity pressures continue to keep inflation elevated. The Board chose to hold the target rate to assess the economic outlook, while remaining prepared to raise rates further if necessary.

You can check what this decision means for your own loan.