RBA interest rates: Reserve Bank holds cash rate at 4.35% as house prices continue to fall

The Reserve Bank of Australia has held the official cash rate at 4.35%. This decision was widely expected and comes after three rate hikes earlier this year. According to The Guardian, the bank warned that falling house prices will slow income growth.

The rate hold follows a decline in property values in major cities, including Sydney and Melbourne, which has now spread to Brisbane, Perth, and Adelaide. ABC News AU reported that headline inflation cooled slightly in June, but underlying inflation pressures remain elevated. The bank's Monetary Policy Board noted that inflation is likely to remain high for some time, citing capacity pressures in the economy and the impact of higher fuel prices.

The Reserve Bank's next interest rate meeting will be held on September 28-29. Economists have warned that underlying inflation is still too high, and some expect interest rates to rise again to control inflation.

Brief written by urgent.news from The Guardian, ABC News AU, The Guardian Australia, WSJ Economy — 4 reports on this story. Machine-written — it may contain errors, so check the original before relying on it.