๐ฅ๐๐ ๐ป๐ผ๐ ๐ฅ๐๐๐ต๐ถ๐ป๐ด ๐๐ผ ๐ฐ๐๐ ๐ฅ๐ฎ๐๐ฒ๐
The Reserve Bank of Australia (RBA) has left the cash rate at 4.35% and given notice that it will be some time before it thinks about reducing interest rates.
The key to what happens with the cash rate is inflation โ which, at 4.1%, remains higher than the RBA's target range of 2-3%. In a statement, the RBA board said it โremains resolute in its determination to return inflation to target,โ which suggests it won't make any rate cuts until it's sure inflation is back under control.
โThe board needs to be confident that inflation is moving sustainably towards the target range. To date, medium-term inflation expectations have been consistent with the inflation target and it is important that this remains the case,โ the board said.
โWhile recent data indicate that inflation is easing, it remains high. The board expects that it will be some time yet before inflation is sustainably in the target range. The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, and a further increase in interest rates cannot be ruled out.โ
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