Reserve Bank of Australia held its policy rate unchanged for a second
consecutive meetings, in line with economists’ and money-market expectations,
saying it would pause to assess developments. Renewed Middle East conflict
lifted oil prices, but July inflation undershot forecasts, removing market odds
of an August hike and giving the board room to wait on Strait of Hormuz
developments. RBA forecasts show inflation remaining above 2.5% until early
2028. The bank warned a rapidly deteriorating housing market — prices have
started to fall after three hikes in 1H and the downturn accelerated after the
federal budget tightened tax concessions for property investors — could hit
household consumption and GDP; larger-than-expected house-price falls would
further weaken growth.
