The RBA has kept interest rates on hold at 4.35 per cent, saying inflation is still too high to start cutting rates.
The Reserve Bank board has decided to keep the cash rate steady at 4.35 per cent for another six weeks at least.The cash rate will remain at 4.35 per cent for another six weeks, until the RBA board's next meeting in early November.
That decision saw the US joining the European Union, the United Kingdom, Canada, New Zealand, Denmark, Switzerland, China, and many other countries in cutting rates in recent months. In a statement on Tuesday, the RBA board said inflation was still too high for interest rates to be cut. "In underlying terms … inflation was 3.9 per cent over the year to the June quarter, broadly as forecast in the May Statement on Monetary Policy .
After the RBA board's last meeting in August, she said she did not expect to cut rates this year, given the way Australia's economy was travelling. A month after her comments, new data showed Australia's economy had just recorded its slowest annual growth rate since the recession in the early 1990s.
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