For the first RBA meeting since April 2022, the RBA has left rates unchanged.

The pausing of the cycle of interest rate increases, keeping the cash rate on hold at 3.60% is a welcome relief for borrowers and households, as the RBA looks to see how inflation numbers react to the rises that have come, but commentary from Governor Philip Lowe left the door open for future changes, based on the challenges that the Australian economy faces in the coming months.

"The Board recognises that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt,"

"The Board took the decision to hold interest rates steady this month to provide additional time to assess the impact of the increase in interest rates to date and the economic outlook." Lowe followed up with "The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty.”

The fine line in balancing both inflationary pressures, with the potential of recession - this balance will continue for the coming months.