RBA Holds Rates Steady as Economy Navigates Inflation and Spending Risks

The economy is finely balanced between high inflation and weak consumer spending risks. Interest rates were kept steady to monitor these risks.

Households are under pressure from higher costs, but most can still service debts. Some are struggling to cover expenses.

Inflation may stay higher for longer if services costs keep rising or demand exceeds supply.

Consumer spending may not pick up as expected even as wages rise, slowing growth.

The RBA is monitoring overseas risks like China's property slump that could hit export incomes.