RBA leaves cash rate at 4.35pc, says inflation ‘too high’
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 predicted by the market and economists, saying “underlying inflation remains too high”.
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: Central banks continue to ease monetary policy but sticky services inflation and a booming job market in Australia are keeping the RBA on the sidelines. Before the announcement, markets were pricing in a 24 per cent chance of a rate cut in December, 45 per cent for February and 100 per cent for May.
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.
