The RBA has once again chosen to keep the cash rate target steady at 4.10% as inflation continues to cool.
In his penultimate monetary policy decision as RBA Governor, Dr Philip Lowe decided against what would have been a thirteenth rate hike since April 2022.
Headline inflation continues to slow as the rate increases already implemented work to curb discretionary spending.
A pause was widely expected, with the RBA rate tracker powered by the ASX suggesting there was an 86% chance the board would hold rates once again.
Economists from NAB and ANZ correctly anticipated the hold.
Dr Lowe warned further tightening may be necessary in the months to come, a sentiment echoed by CPA Australia spokesman Gavan Ord.
"Notwithstanding today’s rate reprieve, higher interest rates, rising wages and increased costs will keep putting pressure on small businesses. Many businesses will need to pass these costs on to consumers," Mr Ord said.
"There’s every likelihood today’s decision to hold rates is only temporary. Prudent businesses should be factoring in further rate increases into their business projections."
"RBA cash rate steady at 4.10% after August's monetary policy decision" was originally published on Savings.com.au and was republished with permission.