The Reserve Bank of Australia (RBA) has decided to pause their 10 month-long interest rate hiking cycle, providing Australian mortgage holders and small businesses temporary relief in a challenging economic climate. During the board meeting on April 4th, the central bank announced the official cash rate would remain stable at 3.6 percent. The board recognized the effect of the monetary policy and acknowledged that the full impact of the significant increase in interest rates since May 2022 had not yet reached the economy. RBA governor Philip Lowe stated that this decision allows for more time to assess the state of the economy and outlook in an environment of uncertainty. While inflation and economic activity have slowed, the board remains alert to the risk of a wage-price spiral. The RBA’s decision brings much-needed respite to Australian homeowners as many struggled to manage their skyrocketing mortgage payments. The business community is relieved at the pause, but analysts believe the RBA may need to continue raising interest rates in response to inflation.