Australia Keeps Key Rate Unchanged As Expected

RTTNews | 21 days ago
Australia Keeps Key Rate Unchanged As Expected

(RTTNews) - The Reserve Bank of Australia left its benchmark rate unchanged, as widely expected, but cautioned about pronounced geopolitical uncertainties.

The policy board of the RBA, governed by Michele Bullock, decided to maintain the cash rate target at 4.10 percent.

In February, the bank had reduced the rate by 25 basis points, which was the first cut since 2020.

The interest rate paid on Exchange Settlement balances was also retained at 4 percent today.

"The Board's assessment is that monetary policy remains restrictive," the bank said.

"The continued decline in underlying inflation is welcome, but there are nevertheless risks on both sides and the Board is cautious about the outlook," the bank added.

The board reiterated that it is resolute in its determination to sustainably return inflation to target and will do what is necessary to achieve that outcome.

Policymakers cautioned that geopolitical uncertainties are pronounced. These developments are likely to have an adverse effect on global activity, particularly if households and firms delay expenditures, the board noted.

Capital Economics economist Marcel Thieliant said Bank's communication on balance suggests that it won't be long before the Bank will ease policy further.

The economist expects the RBA to deliver another 25 basis point reduction at the next meeting in May.

However, the easing cycle will be shallower than most anticipate despite the bank becoming increasingly confident that inflation will sustainably return to the target.

read more
Australia Employment Rebounds In Q1

Australia Employment Rebounds In Q1

Australia's employment rebounded in the first quarter and the jobless rate rose only slightly, suggesting that the labor market remained resilient, data from the Australian Bureau of Statistics showed Thursday. The unemployment rate rose to 4.1 percent from downwardly revised 4.0 percent in the December quarter. The rate was expected to advance to 4.2 percent.
RTTNews | 5 days ago
RBA Minutes Say May Meeting Is

RBA Minutes Say May Meeting Is "Opportune" Time To Revisit Policy Setting

Policymakers of the Reserve Bank of Australia said it is important to remain alert to the evolving balance of risks and concluded that the May meeting would be an opportune time to revisit the monetary policy setting, the minutes of the April meeting showed on Tuesday. Members judged that it was not appropriate at this stage for monetary policy to react to the potential risks that could move out
RTTNews | 7 days ago
Australia Westpac Consumer Sentiment At 6-Month Low

Australia Westpac Consumer Sentiment At 6-Month Low

Australia consumer sentiment deteriorated to a six-month low in April on escalating tariff war, survey data from Westpac showed Tuesday. The Westpac-Melbourne Institute Consumer Sentiment Index fell to 90.1 in April from 95.9 in March. The 'family finances vs a year ago' sub-index registered a sharp 8.5 percent fall to 70.2 in April.
RTTNews | 14 days ago
Australia Westpac Consumer Sentiment At 6-Month Low

Australia Westpac Consumer Sentiment At 6-Month Low

Australia consumer sentiment deteriorated to a six-month low in April on escalating tariff war, survey data from Westpac showed Tuesday. The Westpac-Melbourne Institute Consumer Sentiment Index fell to 90.1 in April from 95.9 in March. The 'family finances vs a year ago' sub-index registered a sharp 8.5 percent fall to 70.2 in April.
RTTNews | 14 days ago
Australia Retail Sales Rise 0.2% In February

Australia Retail Sales Rise 0.2% In February

The value of retail sales in Australia was up a seasonally adjusted 0.2 percent on month in February, the Australian Bureau of Statistics said on Tuesday - coming in at A$37.129 billion.
RTTNews | 22 days ago