Australia's Central Bank Holds Interest Rate at 12-Year High of 4.35% Amid Persistent Inflation

Jun 18, 2024, 04:32 AM

Australia's central bank, the Reserve Bank of Australia (RBA), has decided to keep its key interest rate unchanged at 4.35%, a 12-year high. This decision comes as the RBA aims to control persistent inflation, which has been bolstered by a tight employment market and elevated service inflation. The RBA's board noted that output growth remains sluggish and that there is ongoing uncertainty around growth in consumption. Despite high unit labor costs and slow productivity growth, the bank remains vigilant and committed to returning the Consumer Price Index (CPI) to its target. The RBA's neutral stance indicates that it will rely on upcoming data and risk assessments to guide future monetary policy decisions. The Aussie currency remained stable following the announcement.