RBA kept its cash rate target unchanged at 4.35% today, as widely anticipated. In its statement, the RBA acknowledged that while headline inflation has seen a notable decline and is expected to stay lower in the near term, the focus remains on underlying inflation, which it described as “more indicative” of ongoing inflation momentum and still “too high.”
The bank’s economic forecasts emphasize the need to stay “vigilant to upside risks to inflation.” Reflecting this caution, RBA reiterated its approach by stating it is “not ruling anything in or out.”
