..AUD retreats to 66.06c RBA leaves cash rate at 4.35pc
Sarah Jones
The number: The Reserve Bank of Australia left the cash rate on hold at a 12-year high of 4.35 per cent as widely predicted by the market and economists. Why it matters: The central bank has lifted interest rates 13 times since 2022 to tame inflation that has remained stubbornly above the RBA’s 2 per cent to 3 per cent target. What has changed: Inflation came in hotter-than-expected in the March quarter and the unemployment rate fell to near 50-year lows, prompting bond traders to price in a 44 per cent chance of another rate increase from the central bank this cycle. Most economists still expect the next move will be a rate cut by the end of the year or early 2025.
What’s next: RBA governor Michele Bullock will hold a media conference at 3.30pm and may provide more insights into the board’s decision-making. It has been six weeks since the central bank last commented on monetary policy.
