RBA Holds Cash Rate Steady at 4.35% as Expected

The Reserve Bank of Australia (RBA) kept the Official Cash Rate (OCR) at 4.35% after its August monetary policy meeting, matching the consensus expectation of economists. The decision extends the pause that began after the central bank’s last hike in June 2023.

Board members noted that inflation remains above the 2–3% target band, but is gradually moderating. The RBA reiterated that it will pay close attention to incoming data and evolving risks to the economic outlook.

The Australian dollar showed little immediate reaction, as traders had widely anticipated the hold. Market pricing suggests rates are likely to remain on hold in the near term, with any potential move dependent on further inflation and labour market signals.