Australia’s central bank leaves its key rate unchanged, says inflation ‘passed its peak’
Timilehin Adejumobi
1 min read
Australia’s central bank held its official cash rate steady at 4.10% in a closely watched decision Tuesday.
Economists were split on expectations ahead of the decision, with 16 out of 31 respondents surveyed by Reuters forecasting a hike of 25 basis points and 15 expecting the central bank to hold.
Stocks cheered the move as the central bank said “inflation in Australia has passed its peak.” The S&P/ASX 200 pared earlier losses and rose 0.21%.
The Australia Bureau of Statistics’ monthly inflation indicator showed some cooling in the rise of prices at 5.6% for the month of May, led by housing prices, food and non-alcoholic beverages.
Australia’s monthly inflation indicator peaked at 8.4% in December. The economy’s consumer price index rose 7% in the first quarter of 2023.
The decision comes after the central bank raised its cash rate by 25 basis points last month — a move it described as a “finely balanced” decision, according to minutes from its June meeting.
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