The Reserve Bank of Australia left the cash rate at 4.35% in a unanimous 9-0
vote, marking its first pause after three increases this year that have begun to
weigh on the economy. Chair Bullock will hold a press conference; markets will
watch for guidance on whether the bank is entering a prolonged pause or will
maintain a restrictive stance. The RBA said: "Since the start of the year the
cash rate target has been increased three times; the current financial
The environment is tighter than before, and signs of economic slowing have appeared
as expected." The pause signals a pullback from earlier aggressive tightening
that made the RBA an outlier among major central banks. Policymakers said
inflation remains too high and energy cost upside from the Iran war is a risk,
but recent soft data gives scope to hold rates steady and reassess.
