Australia’s central bank keeps cash rate unchanged at 4.35 pct

SYDNEY, Sept. 24 (Xinhua) — Australia’s central bank left the cash rate target on hold at 4.35 percent on Tuesday, saying the country’s inflation remains above target and is proving persistent.
The board of the Reserve Bank of Australia (RBA) said in a statement that it decided to leave the cash rate target unchanged at 4.35 percent and the interest rate paid on Exchange Settlement balances unchanged at 4.25 percent.
“Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the board said.
“But inflation is still some way above the midpoint of the 2-3 percent target range. In underlying terms, as represented by the trimmed mean, inflation was 3.9 percent over the year to the June quarter,” it said. “Our current forecasts do not see inflation returning sustainably to target until 2026.”
The board said it remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome. ■