Key facts
- The Reserve Bank of Australia (RBA) maintained its cash rate at 4.35%.
- RBA Governor Michele Bullock stated that inflation is still too high and further rate hikes are possible.
- The decision to hold rates follows three consecutive increases.
- Unemployment has increased to 4.5%, and consumer confidence is at historic lows.
- Global oil prices have decreased due to reports of a Middle East ceasefire.
- Bullock acknowledged that a resolution in the Middle East could lower commodity prices but cautioned it may take time.
The Reserve Bank of Australia (RBA) decided to maintain its benchmark cash rate at 4.35%, pausing a series of recent hikes. RBA Governor Michele Bullock emphasized during a press conference that despite the pause and the "tough" impact of higher borrowing costs on households, inflation remains a primary concern. She reiterated that further monetary policy tightening could be necessary if inflation does not move towards the RBA's 2-3% target range.