The Reserve Bank of Australia (RBA) has announced it will keep interest rates on hold at 4.35%.
It’s the third RBA decision in a row where the cash rate has stayed the same, after interest rates rose for 10 consecutive months over 2022 and 2023.
In a statement, the RBA said it’s encouraged by easing inflation (rising prices). However, it added that other parts of the economy remain “highly uncertain”.
About the RBA
The RBA is Australia’s central bank. Its key responsibility is setting the ‘cash rate‘ — an interest rate it charges commercial banks for short-term loans.
This rate influences the cost of borrowing across the economy, so changes to the cash rate are often called changes to ‘interest rates’.
The RBA has regularly raised interest rates over the last two years to fight rising prices (inflation). The current cash rate is 4.35%. It was 0.10% at the start of 2022.
RBA’s decision to hold interest rates, in context
Here’s how interest rates have changed since May 2022.
