The Reserve Bank of Australia has kept the cash rate unchanged at 3.60 per cent, as policymakers weighed a firmer-than-expected economic recovery against signs of a fresh pick-up in inflation. The Monetary Policy Board said the decision was unanimous.
Inflation has eased significantly from its 2022 peak, but recent data show a renewed rise. The bank noted that part of the increase in underlying inflation appears temporary, and emphasised uncertainty around the monthly CPI series given its relative newness. Even so, there are emerging signals of a more broadly based acceleration in prices that could prove persistent, warranting close monitoring.
