This marked the third straight month that RBA put the interest rate on hold from July.
Wrapping up a monetary policy meeting, RBA Governor Philip Lowe noted in a statement that interest rates have been increased by 4 percentage points since May last year.
"The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so. In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month," said Lowe.
The governor believed that the decision would provide further time to assess the impact of the increase in interest rates to date and the economic outlook.
The central forecast is for consumer price index (CPI) inflation to continue to decline and to be back within the 2-3 percent target range in late 2025, he said.
Data from the Australian Bureau Of Statistics showed that over the 12 months to the June 2023 quarter, the CPI rose 6.0 percent, easing from the peak of 7.8 percent in the December 2022 quarter.
Meanwhile, the monthly CPI indicator rose 4.9 percent in the 12 months to July, down from 5.4 percent in June.
Despite these easing signs, Lowe warned that inflation is still too high and will remain so for some time.
"Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will continue to depend upon the data and the evolving assessment of risks," said Lowe.
Tuesday's gathering was Lowe's last board meeting as his over 40-year career at RBA would come to an end this month.
On Sept. 18, Deputy Governor Michele Bullock would take over as the ninth governor for a seven-year term, making history as the first woman to lead the RBA in its 63-year history.
Latest comments