What happened
In its August Statement on Monetary Policy, the Reserve Bank of Australia confirmed it kept the cash rate target unchanged at 4.35 per cent. The RBA warned that inflation remains too high and is not projected to return to the midpoint of its 2 to 3 per cent target range until early 2028, citing ongoing domestic price pressures and energy costs.
Why it matters here
Extended policy tightness from the central bank maintains pressure on household disposable income, mortgage servicing costs, and corporate balance sheets. For Australian equities, persistent high interest rates tend to weigh on valuations for growth stocks and cap price expansion across residential property markets.
What to watch
Upcoming quarterly gross domestic product figures and trimmed-mean inflation releases to measure the extent of economic slowing across the broader domestic economy.
Source
rba.gov.au