The Reserve Bank of Australia (RBA) was on May 2, 2022 at the Central Bank Building in Sydney, Australia.
Brendon Thorne | Bloomberg | Getty Images
The Australian Central Bank has a policy rate of 3.85%, saying it will take more time to assess inflation data.
Reuters conducted economists are expected to cut 25 basis points to 3.6%.
The Reserve Bank of Australia said in a statement on Tuesday that it is awaiting “more information to confirm that inflation can reach 2.5% on a sustainable basis.”
“While recent monthly CPI indicator data suggests that inflation in June may be widely consistent with forecasts, their profit margins are slightly stronger than expected,” the central bank added.
Australia’s inflation comes in May’s forecast is below 2.1%the lowest since October 2024. In the first quarter, inflation was 2.4%.maintain a four-year low.
After the decision, the Australian Treasury Jim Chalmers says on X The Royal National Gathering move “is not what thousands of Australians want or markets or economists expect.”
He added that the country has “major and ongoing progress in inflation” and touted the government’s efforts to reduce the cost of living.
The S&P/ASX 200 index fell 0.24% while the Australian dollar rose 0.79% after the data was released.
Australia is currently working on slowing growth as public spending decreases, consumer demand and exports weaken.
The country recorded 1.3% expansion In the first quarter of this year, the polls that lacked Reuters were expected to be 1.5%.
