Australia kept rates at a 13

Under ongoing price pressures,Top 10 Forex Dealers in the World the Reserve Bank of Australia has decided to keep the key interest rate at 4.35%, marking the ninth consecutive meeting of unchanged rates, aligning with market expectations. This decision signifies that the central bank has maintained rates at a 13-year high for over a year.

The Monetary Policy Committee stated that although Australia's core inflation remains elevated, they hold some confidence in the sustainability of inflation moving towards the target. The Committee mentioned that based on recent economic data, monetary policy remains restrictive and functions as anticipated, although the outlook remains uncertain.

The Reserve Bank emphasized that future decisions would continue to depend on evolving economic data and risk assessments. Despite ongoing potential inflationary pressures, other indicators of economic activity have been mixed. The central bank also noted that the current monetary policy would continue to monitor inflation dynamics and adjust when appropriate.

Following the policy announcement, the Australian dollar further declined against the U.S. dollar, dropping by 0.7% to 0.6398 USD. Meanwhile, the Australian S&P/ASX200 index slightly narrowed its losses, decreasing by 0.3%. The Australian dollar and the yield on 3-year government bonds, sensitive to policy changes, also fell. Since the last central bank meeting, the Australian dollar has dropped by about 3% against the U.S. dollar, while Australian government bonds have risen due to market expectations of a possible rate cut next February.

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