RBA Holds Rate at 4.35%, Signals Tightening Bias Amid Slowing Growth

The Reserve Bank of Australia (RBA) held its cash rate at 4.35% at the latest meeting, maintaining a tightening bias that signals readiness to hike if needed. However, OCBC's Christopher Wong highlighted that slowing economic growth and rising unemployment suggest the central bank may be entering a prolonged pause.

Markets now expect the RBA to remain on hold for an extended period, with the next move likely dependent on inflation and labor market data. The Australian dollar softened slightly on the mixed signals.