Australia’s central bank, the Reserve Bank of Australia (RBA), announced on Tuesday that it would maintain its benchmark interest rate at a 12-year high of 4.35%. The decision, which was widely anticipated by markets, comes amid ongoing concerns about inflationary pressures.
The RBA’s decision to hold rates steady follows its last rate hike of a quarter point in November. The central bank’s decision to maintain the current rate reflects its cautious approach to managing inflation while supporting economic growth.
In its statement, the RBA acknowledged that inflation had eased more than expected in the last quarter. However, it also cautioned that a further increase in interest rates could not be ruled out, given that inflation levels were still considered too high. The central bank’s focus on containing inflation underscores its commitment to maintaining price stability in the face of global economic uncertainties.
The RBA’s decision comes at a time when central banks around the world are grappling with rising inflationary pressures amid supply chain disruptions and energy price spikes. The bank’s stance on interest rates will continue to be closely watched by investors and policymakers as they assess the impact of inflation on the broader economy.
(Source: Reuters | WSJ | The Guardian)
