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The RBA holds interest rates steady, but warns another hike is possible if inflation stays high

By Stella Huangfu, Associate Professor, School of Economics, University of Sydney

The Reserve Bank of Australia (RBA) has left the official cash rate unchanged at 4.35%, choosing to pause after raising interest rates three times already this year.

The decision was widely expected. Inflation remains above the RBA’s 2–3% target range, while the economy is slowing and households continue to feel the strain of higher borrowing costs.

Importantly, however,…

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