Australia central bank warns hikes are not off the table as it keeps rates steady at 4.35%
The central bank said future moves will depend on incoming data as inflation stays above target and growth has slowed.
- On Tuesday, the Reserve Bank of Australia unanimously held the cash rate at 4.35%, pausing after three consecutive 2026 hikes. Governor Michele Bullock warned that future rate increases remain possible if inflation data fails to moderate as expected.
- Persistent inflation, driven by global oil supply disruptions following the Middle East conflict, prompted the board's cautious stance. While oil prices have eased slightly, the RBA warns that energy costs continue exerting upward pressure on goods and services.
- Treasurer Jim Chalmers welcomed the stability, noting the pause offers relief to millions of mortgageholders struggling with repayments. However, households still face higher costs from three earlier hikes this year that added nearly $300 monthly to a $600,000 mortgage.
- Compare the Market Economic Director David Koch urged Australians to actively manage their finances by switching lenders. Koch warned that loyalty to banks rarely pays off, advising borrowers to seek better offers to mitigate elevated interest rates.
- Ebury economist Anthony Malouf expects the RBA to maintain the current cash rate through early 2027 to balance growth risks against inflation. Canstar Data Insights Director Sally Tindall cautioned that borrowers who fail to negotiate could pay thousands in extra repayments.
21 Articles
21 Articles
Australia central bank warns rate hikes might not be over after holding fire
Australia's central bank held its cash rate steady at 4.35% on Tuesday, saying the economy was slowing in the face of tighter financial conditions but warned it might hike the rate again if it was needed to control inflation.
Australia’s central bank holds rates, warns hikes might not be over
The Reserve Bank of Australia vowed action, including further cash rate increases if required, as inflation remained too high. (EPA Images pic) SYDNEY: Australia’s central bank held its cash rate steady at 4.35% on Tuesday, saying the economy was slowing in the face of tighter financial conditions but warned it might yet hike again if needed to control inflation. Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) said infla…
Sydney Morning Herald
RBA keeps rates on hold
The Reserve Bank of Australia has kept interest rates on hold at 4.35 per cent.
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