RBA Expected to Hold Rates Amid Persistent Inflation Risks

The Reserve Bank of Australia (RBA) is expected to keep its cash rate unchanged at 4.35% in its upcoming meeting, according to BNY.

This decision comes as inflation risks remain elevated and the central bank balances price pressures against slowing economic growth.

BNY analysts cited the need to assess the impact of previous hikes and the persistence of underlying inflation as reasons for a hold.

Australia's inflation rate has cooled but remains above the RBA's 2-3% target band, prompting the bank to remain vigilant against upside risks to inflation.