The Reserve Bank of Australia holds rates steady, signaling restrictive policy amid persistent inflation pressures.
The Reserve Bank of Australia maintained its cash rate at 4.35%, reflecting concerns over sticky inflation but alignment with its baseline projections. The decision keeps monetary policy in restrictive territory to manage price stability risks.
Prior to the announcement, markets had priced in a high probability of no change, following the last hike in November 2023. Inflation remains above the RBA’s target range, though recent data suggests a gradual moderation.
The central bank’s even-handed tone suggests no immediate shift in policy direction, with future moves dependent on incoming economic data.