Daily Management Review

Reserve Bank of Australia keeps key rate unchanged


Having been increasing the rate at 10 meetings straight, the Reserve Bank of Australia finally kept its benchmark interest rate at 3.6 percent on Tuesday.

ArchivesACT via flickr
ArchivesACT via flickr
The bank stated that more time was required to evaluate how the economy and inflation would be impacted by tighter financing conditions.

Following its April meeting, the RBA issued a statement cautioning that additional rate increases may very well be required to bring inflation back to the desired levels.

Markets had anticipated a break in the central bank's policy tightening cycle, and some experts did not completely rule out a rate increase given the high inflation rate.

source: reuters.com