The Reserve Bank of Australia pauses rate hikes after three consecutive 25 basis points increases, citing persistent inflation risks.
The Reserve Bank of Australia kept its Official Cash Rate unchanged at 4.35% following its June policy meeting, matching market expectations. The decision marks a pause after three straight 25 basis points hikes earlier this year, as inflation remains elevated but shows signs of easing.
Headline and underlying inflation remain too high, though short-term inflation expectations have moderated slightly. The board emphasized data dependency, leaving the door open for further tightening if needed. Uncertainties around domestic economic activity and inflation persist, complicating the outlook.
The Australian Dollar weakened immediately after the announcement, with AUD/USD down 0.27% to 0.7155. The currency underperformed against major peers, reflecting muted market reaction to the widely anticipated decision.