Australian Central Bank Warns of Inflationary Pressure Despite Keeping Rates Frozen for Fifth Time

Reported 8 months ago

The Reserve Bank of Australia (RBA) issued a monetary policy statement on June 18, 2024, maintaining the benchmark interest rate at a 12-year high for the fifth consecutive time but also warning of persistent high inflation risks, hinting at a possibility of rate hikes. Market expectations of a rate cut before the year-end plummeted after the announcement, with the Australian dollar gaining strength. The RBA's cautious outlook on inflation was reflected in its latest policy statement, anticipating the possibility of further tightening monetary policy at its August meeting should inflation data for the second quarter show unexpected increases.

Source: YAHOO

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