RBA says slowing economy and acute pressure on household budgets behind interest rate pause

Minutes from the Reserve Bank’s August meeting show the board considered lifting the cash rate to 4.35% but decided to allow more time to look at economic data

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Slowing economic growth helping to drag inflation down and a recognition that some households faced “acute financial challenges” were among the reasons the Reserve Bank left interest rates on hold earlier this month.

Minutes from the RBA’s August meeting, released on Wednesday, showed the board viewed the risks facing the economy as “broadly balanced” between allowing inflation to remain too high for too long or slowing the economy too hard.

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