The Reserve Bank of Australia maintains its policy interest rate target at 4.35%, in line with expectations.

The Reserve Bank of Australia stated after the August policy meeting that the committee remains committed to ensuring that high inflation does not become entrenched. The cash rate target has been raised three times this year, and the current financial environment is tighter than before, with economic growth appearing to slow as expected. However, inflation remains excessively high. It is anticipated that inflation will not return to the midpoint of the target range until the end of 2027, and this forecast carries upside risks given that monetary policy is considered somewhat restrictive. The committee has decided to maintain the cash rate target while assessing the economic situation. The committee will continue to take all necessary measures to ensure that inflation sustainably returns to the target level, including the potential for further increases in the cash rate target if upside risks materialize. Today's policy decision was made unanimously.