Reserve Bank of Australia Keeps Interest Rates Steady at 4.35%

The Reserve Bank of Australia held its cash rate steady at 4.35% on August 11, 2026, a decision that matched near-unanimous expectations from money markets and economists.

The hold matters because it comes as headline inflation stays too high and trimmed mean inflation, the RBA's preferred core gauge, remains above the target band, reflecting capacity pressures that built through the second half of 2025.

In its statement, the Monetary Policy Board noted that the impact of the Middle East conflict on inflation has so far been smaller than initially expected, but stopped short of ruling out further rate moves if price pressures persist.

Economists are split on the path from here: some read the pause as room to ease later in 2026 if inflation cools, while others expect another hike if trimmed mean inflation fails to retreat toward target. The next quarterly inflation print will be the key input for the RBA's September and November decisions.