According to Jin10 data, the Reserve Bank of Australia has kept the cash rate unchanged at 3.85%, while the market previously expected a rate cut of 25 basis points. Since inflation peaked in 2022, high interest rates have helped balance demand and supply.
The committee believes that the current economic situation is developing largely as expected and has decided to wait for more information to confirm whether inflation can sustainably decline to the target of 2.5%. Global economic uncertainty remains high, although the extent of U.S. tariffs is still unclear, financial market prices have rebounded.
The development of trade policies is expected to have an adverse impact on global economic activity, and the risk of households and businesses delaying spending still exists.