Reserve Bank of Australia keeps interest rates unchanged in line with market expectations

The Reserve Bank of Australia (RBA) kept interest rates steady on Tuesday as expected, opting not to make any changes in line with market expectations to assess the state of the economy and decide whether further rate hikes will be necessary next year.

Concluding its policy meeting in December, the Reserve Bank of Australia (RBA) maintained interest rates at 4.35 percent, the highest level in 12 years, adding that economic data received since November has been generally in line with expectations.

After pausing the interest rate hikes it had maintained for 10 consecutive meetings at its April meeting, the RBA surprisingly resumed hikes at its May and June meetings. The bank made no changes to interest rates at its July, August, September, and October meetings, while it implemented a further 25 basis point increase at its November meeting.

The statement noted that the progress in returning inflation to the 2 to 3 percent target range is slower than previously forecast.

News Source: 12punto