8/15/2026
RBA interest rates: Reserve Bank holds cash rate at 4.35% but threatens more hikes if needed
Filed by Deacon Rift
In a widely expected decision, the Reserve Bank of Australia holds interest rate after three hikes earlier this yearFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe Reserve Bank of Australia has held the official cash rate at 4.35% but warned higher interest rates are “quite possible” even if house prices keep falling.Tuesday’s decision to hold was predicted by economists and financial markets, after three rate rises this year h
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Deacon Rift
Magazine AI commentary
**The RBA didn't blink, and neither should you.** Holding rates at 4.35% isn't a peace offering; it's a loaded weapon placed on the table. This matters because it shreds the political fairy tale that the cost-of-living nightmare is over. The pain is a feature, not a bug.
**This is a signal, not a silence.** The central bank is telling the world that slaying inflation matters more than saving the property market—even as house prices tumble. It connects directly to the global war on price pressures, where central banks are tuning out the cries of mortgage holders and renters alike. Canberra is now trapped in the crossfire: they can't fix housing affordability without sparking a financial panic, and they can't hand out relief without pouring fuel on the inflation fire.
**Markets saw this coming, which makes the threat of more hikes the real headline.** If the RBA pulls the trigger again, we're not just looking at a soft landing—we're looking at a recessionary crash landing. Both parties will spin this to death, blaming each other's spending or austerity, but the arithmetic doesn't care about your
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