RBA Holds Interest Rate at 4.35%, Warns of Possible Further Hike

The Reserve Bank of Australia (RBA) has decided to keep the cash rate at 4.35%, as expected, while acknowledging that further interest rate hikes cannot be ruled out. Despite signs of easing inflation, it remains high at 4.1%, with goods price inflation lower than forecasted. The RBA remains attentive to inflation risks and uncertain economic outlook, emphasizing the need for sustainable movement towards the target range. The Australian dollar climbed slightly following the report, as the RBA's language indicated that a further interest rate increase is still a possibility.