Reserve Bank holds cash rate at 4.35 percent

The RBA is trying to bring inflation back to target without causing unnecessary damage to the labour market, but ultimately its primary responsibility is price stability, as outlined by KPMG Australia Chief Economist Brendan Rynne.

The Reserve Bank Board has left the cash rate unchanged at 4.35 percent for a second straight meeting. The decision was no surprise, but we still believe the RBA has left the door open to another rate increase later this year. The Board remains concerned that the economy is operating above its sustainable capacity, which means inflationary pressures are likely to persist. One of the key challenges facing the RBA is that Australia has more people employed than ever before. Strong employmen...

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Authors: Brendan Rynne

Published Date: 13 August 2026