The Reserve Bank of Australia (RBA) has left the cash rate unchanged at 4.35% following its August monetary policy meeting. Read the full statement here.
There are tentative signs that inflation is heading in the right direction. Annual trimmed mean inflation – the RBA’s preferred measure – held steady at 3.6% in the 12 months to June 2026, unchanged from May, according to the Australian Bureau of Statistics.
Even so, the Board is not ready to declare the job done. In a recent speech, Governor Michele Bullock warned that underlying inflation remains too high and that “some further easing in the growth of demand is likely to be required” to bring it back to target sustainably. She also noted that the full effects of this year’s cash rate rises are yet to be felt, suggesting the Board is content to let earlier increases continue to work their way through the economy before deciding on the next move.
If you’re wondering how a prolonged pause in the cash rate could affect your borrowing power or repayments, now is a good time to check in. Feel free to reach out.
