RBA Holds Interest Rate as Australia's Inflation Remains High

The Reserve Bank of Australia (RBA) has maintained its cash rate at 4.35 per cent, marking a key difference between Australia and many of its peers.

Australia's inflation target is higher than some other comparable economies, with a band of 2-3 per cent compared to the US Federal Reserve's goal of 2 per cent.

According to AMP chief economist Shane Oliver, interest rates are a 'blunt instrument' for central banks to reduce households' spending on discretionary items and tackle inflation.

Australia's cash rate is higher than those of several countries, including the US at 3.5-3.75 per cent, the UK at 3.75 per cent, and Canada at 2.25 per cent.