RBA keeps interest rates on hold at 4.35% ahead of spring selling season

The Reserve Bank has left the cash rate on hold again, marking a turning point in its approach to controlling the high inflation of 2026.The RBA confirmed on Tuesday that there will be no change to the cash rate, which has been at 4.35% since early May.A reprieve from a fourth rate hike for the year will be welcomed by households across the country, with many continuing to feel the pinch of high inflation in the everyday costs of fuel, food and travel.Rate hikes seem to be on pause for now however, thanks to better-than-expected inflation data for June having left the door wide open for a rate hold.In a statement accompanying the unanimous decision, the monetary policy board said inflation was likely to remain high for some time due to the disruption to the global oil supply.“While the impact of the Middle East conflict on inflation has so far been less than expected, headline inflation is still too high.”However, the bank flagged that this year’s rate hikes were having an impact on both the economy and the housing market.“Following three increases in the cash rate target since the beginning of the year, financial conditions are now tighter than they were, and the economy appears t...