2024-02-06 02:53:40 ET
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Australia's central bank held interest rates steady on Tuesday as expected, but warned that a further interest rate hike is possible due to persistently high inflation.
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The Reserve Bank of Australia kept its cash rates unchanged at 4.35% during its first meeting in 2024, as widely expected. Tuesday's move came after the central bank delivered a total of 425bps rate hike over the past two years to curb a post-pandemic spike in inflation.
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The committee reiterated that it will closely monitor the global economy, trends in domestic demand, and the outlook for inflation and the labor market. The board also maintained the interest rate on Exchange Settlement balances at 4.25%.
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The RBA acknowledged that inflation has eased more than expected in the fourth quarter, but was uncertain on when inflation would return to its 2-3% target in 2025, and the midpoint in 2026.
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Currency: ( USD:AUD )
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More on Australia economy:
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Australia's ASX 200 hits an all-time high as producer inflation eases to 0.9% in Q4
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Australia’s CPI inflation declines to 0.6% in Q4, drops to 2-year low
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Australia services PMI contracts to 47.9, composite PMI drops to 10-month low in October
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Australia Q3 producer inflation advanced by 1.8% Q/Q amid higher prices
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Australia's central bank holds cash rate at 4.35%, signals more interest rate hike