RBA leaves cash rate unchanged at 4.35%

For the sixth consecutive meeting, the Reserve Bank of Australia (RBA) held the cash rate steady at 4.35%.

Market commentators had largely predicted this, particularly following the latest quarterly consumer price index results which showed an increase of 3.8% in the June 2024 quarter, according to the Australian Bureau of Statistics. Although this is up when compared to the 3.6% increase in the March quarter, the result aligns with the RBA's forecasts.

Recently, RBA governor Michele Bullock said the economy was in a difficult place where demand was still too high.

She said the RBA was balancing the fact that demand was still too strong with the fact that monetary policy acts with a lag. She also said that Australia was not seeing the same progress on inflation as other economies.

As a result, she said the economy was at a difficult point and the RBA would remain vigilant.