The Reserve Bank of Australia (RBA) has left interest rates unchanged at 4.35%.
While Australia’s central bank noted inflation (rising prices) had “fallen substantially” since a 2022 peak, it said the outlook “remains highly uncertain.”
The RBA’s target range for inflation is 2-3%. Recent data shows the annual rate of inflation at 3.8%.
Meanwhile, central banks in the U.S, UK, and Europe have dropped interest rates in recent months.
The RBA
The Reserve Bank of Australia (RBA) has left the official cash rate unchanged at 4.35%.
While Australia’s central bank noted inflation (rising prices) had “fallen substantially” since a 2022 peak, it said the outlook “remains highly uncertain.”
The RBA’s target range for inflation is 2-3%. Recent data shows the annual rate of inflation at 3.8%.
Meanwhile, central banks in the U.S, UK, and Europe have dropped interest rates in recent months.
Today’s decision
The RBA has kept interest rates at 4.35%, and said returning inflation to its 2-3% target “is the priority.”
The RBA said government cost-of-living relief measures had helped ease prices, but said it doesn’t see inflation “returning sustainably to target” based on current forecasts.
“There also remains a high level of uncertainty about the outlook abroad,” the board said. It also noted the impacts of “pronounced” geopolitical uncertainties.
