FX.co ★ RBA Holds Cash Rate at 4.35% in August, Extending Policy Pause

The Reserve Bank of Australia (RBA) left its benchmark interest rate unchanged at 4.35% in August 2026, maintaining the level set at its previous decision in June 2026. The move signals a continued pause in the central bank’s tightening cycle, as policymakers assess the impact of earlier rate increases on inflation and economic growth.

By keeping the cash rate steady at 4.35%, the RBA is opting for continuity rather than further tightening or easing, suggesting that current borrowing costs are viewed as appropriately restrictive for current conditions. The unchanged stance will be closely watched by financial markets and businesses, which are weighing the implications for credit demand, investment decisions, and consumer spending.

The latest data, updated as of 11 August 2026, confirm that August’s decision extends the period of stability in Australian monetary policy, as investors look ahead to upcoming economic releases for clues on the RBA’s next move.