Financial News: Australia Keeps Interest Rate Unchanged

Australia Keeps Interest Rate Unchanged

11/04/2025 - 01:36:00 (RTTNews)

(RTTNews) - The Reserve Bank of Australia maintained its key interest rate as the full effects of earlier rate cuts are yet to be felt and policymakers became cautious after data showed evidence of more persistent inflation.

The policy board governed by Michele Bullock decided to hold the cash rate at 3.60 percent, as widely expected, on Tuesday.

The bank had reduced the rate by 25 basis points each in August, May and February. The current 3.6 percent is the lowest since March 2023.

Policymakers observed that some inflationary pressure may remain in the economy.

"With private demand recovering and labour market conditions still appearing a little tight, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting," the bank said.

Further, the Board judged that it was appropriate to remain cautious, updating its view of the outlook as the data evolve. In the statement on monetary policy, the bank said underlying inflation is set to be above the 2-3 percent range until the second half of 2026, reflecting the strong September quarter outcome.

Headline inflation is forecast to remain above 3 percent for much of 2026, before returning to be a little above the mid-point of the target range, the bank said. GDP growth is projected to stabilize around the economy's potential growth rate.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Taiwan Inflation Eases To 1.23%, Lowest Since March 2021 (11 min(s), 53 sec(s) ago)
(RTTNews) - Taiwan's consumer price inflation moderated in November to the lowest level in mor ...Full Story»

Romania Q3 GDP Growth Accelerates As Estimated (31 min(s), 53 sec(s) ago)
(RTTNews) - Romania's economy expanded at the quickest pace in one year as initially estimat ...Full Story»

German Factory Orders Rise More Than Forecast (01 hr(s), 08 min(s), 53 sec(s) ago)
(RTTNews) - Germany's factory orders grew more than expected in October on robust domestic dem ...Full Story»

Singapore Retail Sales Growth Improves To 4.5% (01 hr(s), 33 min(s), 53 sec(s) ago)
(RTTNews) - Singapore's retail sales growth rebounded strongly in October, preliminary data fr ...Full Story»

Estonia Inflation Rises To 4.9% In November (02 hr(s), 16 min(s), 53 sec(s) ago)
(RTTNews) - Estonia's consumer price inflation increased for the first time in three months in ...Full Story»

Japan Leading Index Rises To 17-month High (02 hr(s), 49 min(s), 53 sec(s) ago)
(RTTNews) - Japan's leading index improved further in October to the highest level in nearly o ...Full Story»

European Economic News Preview: German Factory Orders Data Due (03 hr(s), 20 min(s), 53 sec(s) ago)
(RTTNews) - Factory orders from Germany and revised GDP from the euro area are due on Friday, head ...Full Story»

India Cuts Key Rates By 25 Bps (03 hr(s), 32 min(s), 53 sec(s) ago)
(RTTNews) - The Reserve Bank of India lowered its key interest rates on Friday as inflation is exp ...Full Story»