Australia leaves policy interest rate unchanged at 4.35%

At the August meeting, the Reserve Bank of Australia (RBA) left the policy interest rate unchanged at 4.35%, left the loan interest rate unchanged for 6 consecutive times, which was consistent with market expectations.

Nonetheless, the inflation rate is still above 2 to 3% of the target range, and the central bank is concerned that it will approach the midpoint of the target range in 2026.

The Board of Directors has repeatedly emphasized the need to stay alert to the risk of rising inflation, but since it depends on data, it did not rule out anything.

He also stated that the policy is sufficiently restrictive until the inflation rate approaches the target.

At the same time, the RBA saw large uncertainty in the economic outlook, as shown by the slowing GDP growth rate, rising unemployment, and strong pressure on many companies.

The RBA added that it will pay close attention to the global economy and financial markets, domestic demand trends, and inflation and labor market prospects.

The committee also left the interest rate on exchange settlement balances unchanged at 4.25%.

Source: Reserve Bank of Australia