What happened
The RBA Board unanimously voted to leave the cash rate unchanged at 4.35% following three rate hikes earlier this year. Governor Michele Bullock stated that the board considered raising rates and warned another hike remains quite possible because inflation is not projected to return to the 2.5% midpoint until early 2028.
Why it matters here
Tighter monetary policy is already weighing on property values and broader economic growth across Australia. Higher interest rates elevate debt servicing costs for households and businesses, while shifting equity market expectations away from rate relief toward potential further monetary tightening before the end of the year.
What to watch
Upcoming monthly employment and inflation data releases from the Australian Bureau of Statistics alongside financial market rate pricing ahead of the Reserve Bank's September monetary policy meeting.
Source
theguardian.com