Australia Keeps Key Rate Unchanged As Expected

(RTTNews) - The Reserve Bank of Australia left its benchmark interest rate unchanged, as widely expected, on Tuesday.

The policy board, governed by Michele Bullock, unanimously decided to hold the cash rate target at 4.35 percent.

The bank had lifted the policy rate by 25 basis points each in February, March and May. The board observed that inflation is not expected to return to around the midpoint of the target range until late 2027 and there are upside risks to this projection.

"With monetary policy judged to be somewhat restrictive, the Board decided to leave the cash rate target unchanged while it assesses how the economy is evolving," the bank said in a statement.

"The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialize," the bank added.