RBA keeps cash rate at 4.35% with a balanced stance
The RBA has left the cash rate unchanged at 4.35% in its latest meeting. This decision is seen as a sign that the economy is on a steady growth path.
The RBA’s language shift suggests that the board thinks the economy no longer needs to slow further to bring inflation to target. This implies a more predictable growth path, with quarterly GDP expected to settle into a narrow 0.3 to 0.4% band through to mid-2027.
The bank expects a hold on rates through the remainder of 2026, followed by an easing cycle beginning around the middle of next year. This timeline is later than some peers, but consistent with the bank’s view of the RBA’s current stance as balanced.