Australia's central bank leaves its key rate unchanged, says inflation 'passed its peak'
Publishing timestamp: 2023-07-04 02:53:53
Summary
The Reserve Bank of Australia (RBA) has decided to hold its official cash rate steady at 4.10%. The central bank noted that inflation risks have shifted to the upside, but the monthly inflation indicator showed some cooling in the rise of prices. Economists were split on expectations, with some expecting a rate hike and others expecting the central bank to hold. The stock market reacted positively to the decision, with the S&P/ASX 200 rising 0.5%. The Australian dollar weakened against the US dollar. RBA governor Philip Lowe stated that further tightening of monetary policy may be required to ensure inflation returns to target. The decision to hold rates steady was to assess the effects of previous rate hikes. The next consumer price index report will be closely watched.
Sentiment: MIXED
Keywords: central banking, breaking news: asia, economic events, business news, australia, forex markets, world economy, prices, australian dollar/us dollar fx spot rate, asia economy, breaking news, australian dollar, s&p/asx 200,
Source: https://www.cnbc.com/2023/07/04/reserve-bank-of-australia-july-decision.html