Good afternoon. It came as no surprise, but it will be welcome news for homeowners nonetheless. In a widely expected decision, and despite persistent worries about elevated inflation, the Reserve Bank held the cash rate at 4.35%.
The announcement comes amid a steep decline in property prices in Sydney and Melbourne after three rate hikes earlier this year and the Labor government’s major reforms to the capital gains tax discount and negative gearing.
Our economics editor Patrick Commins wrote today that while inflation eased to 3.8% in June, a fourth hike this year remains on the table as the central bank attempts to walk the narrow path back to its 2.5% inflation target without triggering a big rise in unemployment.
