Australia Holds Key Rate As Expected

(RTTNews) - The Reserve Bank of Australia maintained its key interest rate, as widely expected, on Tuesday.

The policy board governed by Michele Bullock voted to hold the cash rate at 3.60 percent.

The bank had reduced the rate by 25 basis points each in August, May and February. The current 3.6 percent is the lowest since March 2023.

Policymakers observed that some inflationary pressure may remain in the economy.

"With private demand recovering and labour market conditions still appearing a little tight, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting," the bank said.

Further, the Board judged that it was appropriate to remain cautious, updating its view of the outlook as the data evolve.