The Reserve Bank of Australia (RBA), Australia’s central bank, kept the cash rate unchanged at 4.1 percent on Tuesday. But it warned that further tightening policy may be required to ensure inflation returns to the 2-3 percent target range in a reasonable timeframe.
Inflation in Australia has passed its peak and the monthly CPI indicator for May showed a further decline, said Philip Lowe, governor of the central bank, in a statement on Tuesday. Inflation is still too high and will remain so for some time yet, he said. The decision to hold interest rates steady this month provides the central bank with more time to assess the state of the economy and the economic outlook and associated risks, he said.—Xinhua
