Australia's Central Bank Keeps Rates Steady as Inflation Stays High

The Reserve Bank of Australia made a unanimous decision to keep the cash rate at 4.35% on Tuesday. The move was expected by economists polled by Reuters as the RBA prepares to raise rates further to maintain its price stability and full employment goals.

The central bank stated that inflation remains a concern, with prices still above its target of 2-3%. The RBA noted that higher fuel costs are contributing to this issue and that it will take some time to resolve.

Australia's GDP growth slowed down to 0.3% quarter-on-quarter in the first three months of the year, missing forecasts. The RBA is cautious about the country's economic prospects due to ongoing global uncertainty.

Inflation in Australia has been above the central bank's target, with the April reading at 4.2%. The RBA is prepared to take further action to manage inflation and achieve its price stability goal.

The Australian S&P ASX 200 index was marginally down following the decision, while the Australian dollar weakened against the US dollar.

The Reserve Bank of Australia will continue to monitor the economy and make further moves as necessary to maintain its goals.

© 2026 Versant Media, LLC. All Rights Reserved. A Versant Media Company.

Data is a real-time snapshot, with delays of at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.