RBA holds cash rate at 4.35pc for second meeting, flags scope to hike again - analyst take
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The decision was fully priced and unanimous, so the market reaction sits less in the outcome than in the tone. CBA reads the Board's strengthened conditional guidance, that it will hike further if upside risks materialise, as a deliberate signal to prevent markets from getting ah
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4 itemsRBA holds rates at 4.35%, signals further hikes still possible - recap
CBA sees RBA on hold for rest of 2026 after third consecutive hike to 4.35%
The desk anticipates that the Reserve Bank of Australia (RBA) will maintain its cash rate at 4.35% for the remainder of 2026, with potential rate cuts beginning in 2027. This outlook is supported by Commonwealth Bank's recent analysis, which highlights inflation concerns and a downgraded GDP forecast. Per the full note [source], the RBA's decision to raise rates for the third consecutive time reflects a cautious approach to monitoring economic developments, particularly in light of inflationary pressures stemming from energy costs. The desk notes that the market's current pricing may not fully reflect the potential for an August rate hike if inflation data surprises to the upside.
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