The Reserve Bank held the cash rate steady at 4.35% on Tuesday — its first pause after three consecutive hikes earlier in 2026. Governor Michele Bullock made clear this is a breather, not a finish line: "If we need to increase again, we will." Inflation sits at 4.2%, well above target, and the board's decision was unanimous. No dissenter this time.

"We don't want to put it into recession, we want to slow it enough that we can bring the inflation...