Sydney, Australia, 25 August 2026 – Australia’s central bank board debated raising interest rates at its August meeting before unanimously keeping the cash rate at 4.35%, revealing a meaningful division over whether inflation risks require further tightening. Several of the nine members judged that another increase could become necessary, while others preferred to wait for more evidence.
The board has already raised rates three times in 2026 and considered a fourth move. Members who favoured patience argued that the existing setting appeared restrictive enough to bring inflation down and that the economy could be observed for “some time”. Those more concerned about upside risk saw value in acting before inflation pressure became embedded.
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