The Reserve Bank of Australia’s nine-member policy board unanimously left the cash rate at 4.35% after debating whether to raise it for a fourth time this year. August minutes showed inflation had eased from its March peak and underlying price growth was slightly lower than in late 2025, but members still judged it “too high,” with excess demand persistent and a gradual return to the 2% to 3% target expected only by late 2027. Several members cited upside risks from the Middle East conflict and oil prices, more complete cost pass-through by firms, stronger AI and data-centre investment, resilient demand and weak productivity. Others said policy was already somewhat restrictive, inflation was slightly below forecast and unemployment was rising, warranting a wait for more data. The board kept rates unchanged but reaffirmed it was prepared to act if upside risks materialize. Markets priced a 13% chance of a hike to 4.6% at the Sept. 28-29 meeting and about a 67% chance of such a move by February next year.