The Reserve Bank of Australia (RBA) hold rates at 4.35% with negative Housing & Inflation

The Reserve Bank of Australia (RBA) hold rates at 4.35% with negative Housing & Inflation

In June the RBA held the cash rate steady in June at 4.35%, providing some breathing space after earlier increases.

Higher inflation and 75 basis points of rate hikes have had a clear dampening effect on housing demand in a very nervous market.

Uncertainty around taxation policy and deeply pessimistic sentiment all work in the same direction.

Interest rate settings remain a key source of risk , even though the chance of another rate hike is unlikely but not out of the question due to inflation remaining above target and the labour market remaining tight.

The proof is in the pudding so the data results over the next few months will be important in determining whether the current pause can be sustained.