SBS News

The Reserve Bank of Australia (RBA) has handed down its interest rate decision.

The board left the cash rate on hold at 4.35 per cent, as was widely forecast by economists.

Treasurer Jim Chalmers says the interest rate hold is positive news but has acknowledged there's "more work to do".

"This will come as a relief to Australians with a mortgage," he said in a post on social media after the decision was announced.

The RBA board has also weighed in on other financial conditions, beyond inflation, that contributed to its decision.

It noted that consumer spending growth is gradually slowing "as expected", while growth in business debt and investment remains strong.

The RBA board predicts that inflation will remain above 2.5 per cent — the midpoint of its 2-3 per cent target range — until mid-2027.

"There continue to be heightened uncertainties about the outlook for domestic economic activity and inflation," it said in its decision statement.