RBA Pushes Back Against Near-Term Rate Cut on Inflation Risk
- Says policy needs to be sufficiently restrictive to tame CPI
- RBA considered a hike and not closing door on tightening
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Australia’s central bank kept interest rates at a 12-year high and all-but ruled out a rate cut in the next six months, splitting with global counterparts as it waits for inflation to abate.
The Reserve Bank held its cash rate at 4.35% for a sixth straight meeting on Tuesday and lifted its forecasts for inflation and economic growth. In her press conference after the policy decision, Governor Michele Bullock said there’s still a risk that inflation will take too long to return to target and said it’s too early to be talking about imminent easing.