The Reserve Bank of Australia (RBA) has opted to keep interest rates on hold at their latest meeting, surprising some who expected a further increase. The decision comes amidst concerns about persistent inflation and the ever-growing issue of rising house prices.
This marks the first time the RBA has utilized its new two-day meeting schedule to assess economic data. The board ultimately voted to maintain the current cash rate target at a 12-year high of 4.35%.
Financial markets had largely anticipated this decision, with economists divided on the timing of a potential rate cut rather than its inevitability.
RBA Governor Michele Bullock acknowledged the need for more economic data before offering relief to borrowers struggling with high interest rates.
"While recent data suggests inflation is moderating, it's declining at a slower pace than initially expected," Bullock stated.
The Governor emphasised the RBA's commitment to bringing inflation back within its target range.
"The Board remains vigilant to potential upside risks and expects it will take time for inflation to reach its target levels," Bullock added. "The path of future interest rates to achieve this goal remains uncertain, and all options are on the table."