Australia’s RBA holds rates at 3.6%

Australia’s central bank has kept the nation’s benchmark interest rate on hold at 3.6% this ￰0￱ and economists had widely anticipated the ￰1￱ decision follows three rate cuts earlier this year, representing a move toward greater caution while inflation quickens ￰2￱ central bank has tried to quell post-pandemic inflation without pinching off job ￰3￱ data suggest progress, though risks of inflation ￰4￱ monthly inflation gauge was up for a second straight month in August. Housing, food, and alcohol prices ￰5￱ caution that this trend may indicate fresh price pressures, particularly in ￰6￱ to RBA Governor Michele Bullock last week, the economy was showing “a bit stronger” than expected ￰7￱ added that the labour market is close to full employment and private sector activity is strengthening.

Bullock, however, has cautioned that the RBA is not on a preset ￰8￱ decisions will be conditioned on new real-time inflation, jobs, and wages ￰9￱ await guidance on cuts The 3.6% pause by the RBA hasn’t halted the debate over what happens ￰10￱ has shifted to the timing of the next step, with some analysts still predicting rate cuts are ￰11￱ and Bloomberg Economics foresee the four-year curve falling below 3 per cent by the end of ￰12￱ believe the economy will slow down sufficiently to compel the bank into action sooner than many ￰13￱ Australia Bank has also extended its forecast to May 2026 with no change in ￰14￱ economists say stubborn inflation and robust growth will see the RBA keep rates on hold for significantly longer than market ￰15￱ Bank of Australia (CBA ) previously called for a November cut.

Now, its own economists are backing ￰16￱ cite data on inflation that have come in stronger than expected in recent months as the biggest risk, cautioning that the path to lower rates “is not clear, it is a done deal. “ International dynamics are also complicating the ￰17￱ US Federal Reserve slashed rates again earlier this month, the first time it has cut since late ￰18￱ Fed keeps easing while the RBA holds, and suddenly Australian assets start to look relatively ￰19￱ would bolster capital inflows, push the Australian dollar higher, and help local bond ￰20￱ a split interest rate could make it easier for the RBA not to rush into ￰21￱ relative yields could take some sting out of the financial stress without any need to loosen the stance on ￰22￱ if the stronger currency were to remain, it would also jeopardize weakening ￰23￱ navigates inflation risks carefully If the Fed moves too quickly to lower interest rates, inflation could reignite and reverse all the progress made over the past two ￰24￱ if it leaves rates too high for too long, the risk is weaker growth, sluggish job creation, and more financial stress on household s al ready stretched trying to keep up with hefty mortgage repayments.

It’s a “delicate trade-off,” Governor Michele Bullock recently ￰25￱ central bank is walking a tightrope, seeking to maintain its credibility that it will fight against inflation while not tipping the economy into a ￰26￱ now, the board believes that moderate restraint on policy will be ￰27￱ suggests that interest rates have risen enough to cool prices but not so far as to choke off ￰28￱ that measure payrolls and spending are rebounding as reopening proceeds apace, suggesting the strategy is working, though economists warn the direction could easily ￰29￱ much happens will depend on how inflation behaves in the next few ￰30￱ if prices for housing, energy, and services keep rising, the bank may not have a choice but to continue leaving rates higher well into ￰31￱ matters, of course, is the global ￰32￱ US Federal Reserve and the European Central Bank have started loosening ￰33￱ Australia falls too far behind other countries, capital flows and exchange rate movements may rewrite domestic financial conditions ￰34￱ Difference Wire : the secret tool crypto projects use to get guaranteed media coverage