RBA Holds Interest Rates Steady Amid Economic Uncertainty
The Reserve Bank of Australia has decided to keep interest rates unchanged at 4.1% for a second consecutive month, providing relief for mortgage holders while allowing the central bank to assess the impact of previous rate hikes. Inflation in Australia has slowed to 6% in the second quarter but remains above the RBA's target range of 2% to 3%. The central bank has raised rates by a total of 400 basis points since May 2021, aiming to address surging inflation. Governor Philip Lowe stated that the higher rates are working to establish a more sustainable balance between supply and demand in the economy.