RBA Retains Neutral Policy Bias as Key Rate Held at 12-Year High
- Bank raises near-term inflation forecasts, lowers unemployment
- Currency, yields fall as statement not as hawkish as expected
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Australia’s central bank kept interest rates at a 12-year high in a widely anticipated decision, while sticking with a neutral stance that surprised markets and sent the currency and bond yields lower.
The Reserve Bank held its cash rate at 4.35% for a fourth straight meeting on Tuesday, while raising its near-term inflation estimates and slightly reducing those for economic growth and unemployment. The updated forecasts used a technical assumption of no change in rates until mid-2025.