RBA Holds Rates as Inflation Remains Stubborn

The Reserve Bank of Australia (RBA) is set to hold interest rates at 4.35% for a second consecutive meeting, according to economists and traders.

This decision comes as inflation remains stubbornly strong, with the RBA's trimmed mean gauge above its 2-3% target since late 2021.

RBA Governor Michele Bullock is expected to reiterate the central bank's readiness to tighten policy further if needed.

Commonwealth Bank of Australia's Belinda Allen expects the RBA to slightly bring forward the timing of inflation's return below 3% and anticipates a revision in the jobless rate forecast higher.