Economy · 11 August 2026

RBA holds cash rate at 4.35 percent but signals inflation still too high

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Probably worth doing something about

Directly affects every Australian variable-rate mortgage holder, renter (via landlord pass-through), and anyone with savings or a business loan.

In a nutshell: The Reserve Bank held the cash rate at 4.35% at its 11 August meeting, unanimously and in line with market expectations. Annual headline inflation eased to 3.8% in June, below May RBA forecasts, but trimmed mean inflation remains at 3.6% — above the 2–3% target. Governor Bullock said it is uncertain whether three earlier 2026 hikes have fully worked through the economy. The average variable mortgage rate sits around 6.92%.

Spin Unspin

What they’re saying

The RBA is managing expectations of a possible further hike while not committing; this hawkish hold framing keeps pressure on wages and consumer spending.

Financial comparison sites have a commercial interest in mortgage-holder anxiety; language is accurate as a risk but not a consensus forecast.

RBA decision is confirmed official. Inflation figures are from ABS. Forward guidance language is the RBA’s own; bank forecasts vary on timing of any next move.

Australia Interest Rate

When Will Interest Rates Go Down In 2026? | Canstar

Interest Rate Predictions Australia | August 2026 RBA Forecast

Do I care?

Rates are unlikely to fall soon. Comparing your current rate against the market average (6.92%) and asking your lender for a discount costs nothing.

Fixed rates already price in market expectations; locking in now means betting cuts won’t arrive for 2–3 years. Seek independent financial advice.

Watch the next CPI release — if trimmed mean keeps falling, the case for the next hold strengthens and cuts edge closer.

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