RBA Expected to Hold Rates Amid Inflation Risks

The Reserve Bank of Australia (RBA) is expected to keep interest rates unchanged at 4.35%, according to BNY's Geoff Yu and David Tam.

This decision comes despite persistent inflation and robust labor and spending data, which some might expect would justify a hike in interest rates.

The RBA's cautious approach is likely due to concerns about structural drags on the economy, including housing weakness, lack of terms-of-trade support, and poor productivity.