The Reserve Bank of Australia has kept its policy rate unchanged at 4.35% for a second consecutive meeting, in line with market expectations, amid persistent inflationary pressures while the labour market and property sector show signs of slowing. The RBA said the board remains focused on preventing high inflation from becoming entrenched in the economy and stands ready to take further action, including raising rates again if inflation risks intensify. The RBA also released economic forecasts in its Statement on Monetary Policy, projecting that headline and underlying inflation will only return to 2.5%, the midpoint of the 2–3% target band, by early 2028.
RBA holds rates, but signals possible future hikes, keeping yields elevated.
