The official interest rate has been paused again, despite growing political pressure on the Reserve Bank to start lowering the cash rate from a 12-year high.
In Tuesday’s sixth decision of the year, the RBA held rates again at 4.35 per cent, as it has been since the most recent hike last November.
The Reserve Bank board said while inflation had fallen since its peak in 2022, it still remained above the target range.
Know the news with the 7NEWS app: Download today 
“Headline inflation is expected to fall further temporarily, as a result of federal and state cost-of-living relief,” it said.
“However, our current forecasts do not see inflation returning sustainably to target until 2026.”
The board added its policy would need to be “sufficiently restrictive” until the bank is confident inflation is moving sustainably towards the target range.
“The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome,” it said.
A substantial number of experts forecasted the rates to remain unchanged ahead of the board’s meeting.
After the US Federal Reserve slashed its key interest rate by half a percentage point, the RBA has increasingly come under pressure to bring forward its plans for relief.
More to come …
