RBA Holds Cash Rate at 4.35% as Economy Slows but Inflation Remains Stubborn

The Reserve Bank of Australia has kept the official cash rate steady at 4.35%, opting for caution as the economy shows signs of losing momentum while underlying inflation remains too high for comfort.

The decision unanimous among board members follows recent data showing a softening economy and a rise in unemployment. Despite these signs of cooling, the RBA judged that inflationary pressures have not eased enough to justify a rate cut or a tightening move.

Keeping rates on hold allows the central bank to watch how the economy evolves over the next several weeks, particularly as households continue to feel the strain of higher borrowing costs.

The cash rate will now remain at 4.35% for at least two more months, with the next RBA meeting scheduled for August 10–11.