Australia’s central bank keeps the cash rate steady at 4.35% and signals that additional interest-rate increases may still be needed. According to the central bank’s statement, inflation remains “too high,” which supports maintaining the current policy stance rather than cutting rates. Policymakers also point to tighter financial conditions, describing them as part of the environment influencing the decision. Even though the bank is holding rates at the current level, it warns that the easing of inflation pressures is not assured and that further tightening may be required to bring inflation down. The decision is presented as conditional on incoming economic data, including how inflation evolves and whether financial conditions continue to tighten. Overall, the central bank’s message combines a pause in rate changes with an explicit caution that hikes are not necessarily finished. Both outlets report the same decision and the same warning that inflation still needs to fall further, keeping the focus on controlling price growth.
Australia’s central bank holds interest rates at 4.35% and warns more hikes possible
Australia’s central bank keeps the cash rate steady at 4.35% and signals that additional interest-rate increases may still be needed. According to the central bank’s statement, inflation remains “too...
- Australia’s central bank holds the cash rate at 4.35%.
- The bank says inflation is still too high.
- Policymakers warn that further interest-rate hikes are possible.
- The decision cites tighter financial conditions as part of the current backdrop.
Policymakers held the cash rate at 4.35% amid tighter financial conditions, with further hikes possible to curb inflation.
2 months agoIn its statement, the RBA said that inflation was "still too high," which warranted to keep the cash rate unchanged
2 months ago
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