Home›Forex›Central Banks›RBA holds cash rate at 4.35% as inflation target retur…

RBA holds cash rate at 4.35% as inflation target return delayed

Standard Chartered says the RBA expects inflation to return to the 2–3% target midpoint only by late 2027.

Reported · Written up by our desk · Central Banks

Standard Chartered’s Nicholas Chia reports that the Reserve Bank of Australia kept the cash rate at 4.35% in a unanimous decision that matched market expectations.

Chia says the RBA expects inflation to return to the midpoint of its 2–3% target range only by late 2027, leaving limited room for immediate tightening.

While the base case is for no further hikes, Chia notes the risk is skewed toward another rate increase in Q4 if demand does not slow enough and energy prices remain problematic.

The outlet adds that the RBA cited still elevated price pressures, including longstanding capacity constraints and an additional inflation impulse from higher fuel prices.

More like this

Sources