Investing.com-- The Reserve Bank of Australia kept interest rates unchanged on Tuesday and warned that inflation was easing at a slower-than-expected pace, although the central bank did not directly threaten to raise rates further as some traders were expecting.at 4.35%, in line with market expectations. The central bank left the rate unchanged for a fourth consecutive meeting after a surprise hike in November.
Still, the bank kept shy of directly threatening to raise interest rates further- a threat it had clearly stated in late-2023, but dropped from its recent announcements.inflation read hotter-than-expected for the first quarter, amid persistent stickiness in service costs. The reading also moved further above the RBA’s 2% to 3% annual target.
The RBA reiterated its forecast that CPI inflation will fall within its annual target by mid-2025, and will hit the midpoint of its target range by 2026. After the strong Q1 inflation data, markets were seen largely pricing out any expectations of rate cuts by the RBA in 2024.pair fell 0.3% in the immediate aftermath of the meeting, given that the RBA still stopped short of directly threatening more rate hikes.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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