Catenaa, Thursday, April 03, 2025-The Reserve Bank of Australia (RBA) kept its benchmark interest rate steady at 4.1% on Tuesday, citing concerns over persistent inflation and global financial risks. The decision marks the seventh consecutive meeting without a rate change as the central bank monitors economic pressures.
RBA Governor Michele Bullock highlighted geopolitical tensions, slowing growth in China, and volatile commodity markets as key risks that could impact Australia’s economy. “Inflation is declining but remains above target. The Board is committed to ensuring it returns to the 2-3% range,” Bullock said.
Australia’s economy has shown signs of slowing, with household spending constrained by high borrowing costs. However, strong labor market conditions and stable wage growth have kept the RBA cautious about premature easing. Markets anticipate rate cuts later in the year but remain uncertain about the timeline.
The central bank’s stance aligns with global trends as major economies, including the U.S. and European Union, navigate inflationary pressures. The Australian dollar reacted modestly to the announcement, trading flat against the U.S. dollar.
Economists say the RBA will closely monitor inflation data and global economic developments before making any policy adjustments. The next rate review is scheduled for May.
