Reserve Bank leaves interest rate on hold at 4.35% despite higher than expected inflation

Mortgage holders have avoided another rate rise with the RBA opting to keep rates steady for the fourth consecutive meeting

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Borrowers have been spared a 14th interest rate from the Reserve Bank and further increases are not certain as the central bank says it avoided a “tightening bias” even as inflation retreated slower than previously expected.

The RBA left its cash rate on hold at 4.35% for a fourth consecutive meeting on Tuesday. The result was widely expected with just one economist – Capital Economics – predicting the central bank would hike today.