RBA interest rates: Reserve Bank holds cash rate at 4.35% as house prices continue to fall

In a widely expected decision, the Reserve Bank of Australia holds interest rate after three consecutive hikes Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast The Reserve Bank has held the cash rate at 4.35% in a widely expected decision despite persistent worries about elevated inflation. The announcement comes amid a steep decline in property prices in Sydney and Melbourne after three rate hikes earlier this year and major reforms to investor taxes. Economists and financial markets were unanimous in predicting no change following the latest two-day RBA board meeting, but a fourth hike this year remains on the table as the central bank attempts to complete a long glide-path back to its 2.5% inflation target without triggering a big rise in unemployment. Inflation eased to 3.8% in June , higher than the RBA’s target of 2% to 3% but below the 4.8% rise the central bank had predicted. Westpac has blamed interest rate rises for a 20% fall in home lending since May.

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