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.

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Reserve Bank of Australia keeps key rate unchanged © Daily Management Review

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

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