The RBA’s decision to hold the rate is to allow more time to assess the impact of previous interest rate increases and the economic outlook.

Australia’s central bank has raised interest rates by a total of 400 basis points since May last year, reaching the highest rate in 11 years.

Inflation in Australia slowed to 6% in the second quarter, down from 7% in the first quarter, but it still remains well above the RBA’s target of 2% to 3%.

There were differing opinions among economists regarding whether the RBA would raise interest rates at this meeting, with a slim majority expecting a 25-basis point hike.

RBA Governor Philip Lowe stated that higher interest rates are working towards achieving a more balanced economy, and due to the uncertain economic outlook, the Board chose to keep interest rates steady this month to assess the situation further.

Brodie Haupt, CEO and co-founder of digital lender WLTH, expressed relief for Australian families and homeowners as the cash rate remains at 4.1%. The rate pause provides a more predictable lending environment for potential homebuyers, allowing them to better anticipate borrowing costs with variable-rate loans.

Full Article: Dynamic Business