No Christmas Gift from the RBA: Cash Rate Remains Unchanged

Despite inflation falling from its 2022 peak, underlying inflation remains high, with the RBA indicating it won’t hit its target until 2026.

A man walks past the Reserve Bank of Australia in the central business district of Sydney on June 7, 2022. - Australia's central bank raised interest rates by a higher-than-expected half percentage point on June 7 and warned of more increases, trying to rein in "significantly" increased inflation. (Photo by Muhammad FAROOQ / AFP) Photo by MUHAMMAD FAROOQ/AFP via Getty Images

The Reserve Bank of Australia (RBA) has disappointed mortgage holders during the Christmas month by maintaining the cash rate steady at 4.35 percent.

The Board says despite inflation falling from its peak in 2022, underlying inflation remains high. The RBA has signalled that inflation is unlikely to reach its target until 2026.