The Reserve Bank of Australia made the anticipated decision to maintain its standard interest rates on Tuesday. This decision, made by the bank's policy board under leadership of Governor Michele Bullock, kept the cash rate target at 4.35 percent.
Furthermore, the interest rate for Exchange Settlement balances remains at 4.25 percent. The Reserve Bank stated that it anticipates a lengthier period before inflation reaches the target zone in a sustainable manner. The bank is maintaining caution towards potential increases in these metrics.
Regarding the optimal path that interest rates might follow to ensure inflation returns to the target within an acceptable timeframe, the bank admitted that the scope remains uncertain. Accordingly, they are not committing to or dismissing any specific approach as of now.
The bank reiterated that future decisions will be based on incoming data and evolving risk evaluations.