Reserve Bank Holds Interest Rate at 4.35% Amidst Economic Slowdown
Quick Look
- The Reserve Bank of Australia maintained its official interest rate at 4.35% due to a slowing economy and rising unemployment.
- This decision offers little relief to mortgage holders facing increased costs from previous rate hikes.
- Higher fuel prices are contributing to inflation.
AI-generated summary
Why It Matters
The Reserve Bank of Australia has kept the official interest rate unchanged at 4.35% as the economy shows signs of slowing and unemployment is on the rise. Higher fuel prices are beginning to impact the cost of goods and services.
Good afternoon.
The Reserve Bank has held the official interest rate at 4.35% as the economy slows and unemployment rises. The widely expected decision will bring little relief to mortgage holders, already strained by the RBA’s three consecutive rate hikes this year.
In a statement accompanying the decision, the Reserve Bank board said it was being proved right in its predictions and higher fuel prices have started pushing up the prices of some goods and services.
The treasurer, Jim Chalmers, said the government welcomed the decision: “We’re pleased with developments in the Middle East but we’re realistic about how long it will take for the global economy to normalise and what that means for us.”
Top news
Two arrested during investigation into Dezi Freeman’s movements as police reveal killer likely travelled to NSW
Grill’d burger chain sued by ACCC over alleged greenwashing
Sydney records warmest run of June days in more than a century
Most Australians under 25 have never used newspapers or radio as a source of news, survey finds
Birthkeeper hired by woman who died after freebirth tells inquest she was ‘not there to make a birth safer’
Paedophile teacher William ‘Rob’ Gilfillan sentenced for sexual offences against two Victorian schoolgirls in the 1980s
World Cup 2026
Over at the World Cup, Belgium and Egypt battled to a 1-1 draw, as did Saudi Arabia and Uruguay. Iran came from behind twice to claim a draw of 2-2 with New Zealand. Next up, France plays Senegal tomorrow at 5am AEST, then Iraq v Norway is at 8am AEST.
On the sidelines, Fifa’s disciplinary committee has cleared the World Cup video assistant referee Shaun Evans after the Australian was accused of making a hand gesture associated with white supremacists.
In other Socceroos-related content, my colleague Bertin Huynh writes he is heartened by Australia’s love for Nestory Irankunda as One Nation surges in the polls.
In pictures
“It seems refugees can help us achieve our goals,” writes political cartoonist Fiona Katauskas.
What they said …
“Something is changing” – Prof Andy Pitman, climate scientist
Temperatures in Sydney topped 20C on Tuesday for the 10th consecutive day, breaking a record for June that had stood since 1919.
Podcast
How the murder of my sister, Jo Cox, changed Britain – podcast
It’s a decade since the British MP for Batley and Spen was killed by a far-right extremist. Her sister, Kim Leadbeater, who took over her parliamentary seat, explains what lessons are still to be learned.
Before bed read
Dutch children are unusually happy and healthy: Is it because of Avondvierdaagse?
Translating to “four-day evening walk”, once a year, Dutch kids, parents and teachers take part in a walking festival for four nights in a single week to explore their neighbourhoods, exercise and make friends. It’s a tradition that seems to be genuinely transformative.
Daily word game
Today’s starter word is: INTO. You have five goes to get the longest word including the starter word. Play Wordiply.
Sign up
Open Questions
- Will inflation continue to rise?
- When will unemployment peak?
- Will the RBA consider rate cuts soon?
