RBA Holds Fire on Interest Rates, Cites Inflation Concerns

The Reserve Bank of Australia (RBA) maintained its interest rate at 4.35% on Tuesday, aligning with market expectations.

RBA Governor Michelle Bullock stated that inflation remains too high and that the bank's board is concerned about the risks of it accelerating.

Bullock noted that the central bank has already raised rates three times this year and is prepared to do so again if necessary.

The RBA forecasts predict that inflation will return to its target level of around 2.5% in about a year, with the economy slowing down as expected following consecutive rate hikes at the start of the year.