According to Jin10 data, the Reserve Bank of Australia has kept the cash rate unchanged at 3.85%, while the market had previously expected a 25 basis point rate cut. Since inflation peaked in 2022, high interest rates have encouraged demand and supply to tend toward balance.
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 scope of US tariffs is still unclear, financial market prices have rebounded.
Developments in trade policy are expected to have an adverse impact on global economic activity, and the risk of households and businesses delaying spending remains.