Australia Interest Rate

Leaving the cash rate unchanged at 4.35% in Australia was the best way to achieve the central bank’s strategy of supporting a gradual return of inflation to the 2–3% target and the labour market to full employment, minutes of the Reserve Bank's March meeting showed. Members also viewed that returning inflation to the desired level remains the board’s highest priority. At the same time, it was important to preserve as many of the gains in the labour market as possible. The minutes revealed that recent economic data indicated the economy was tracking broadly as expected. While there were significant uncertainties, the risks seemed broadly balanced, it added. Members agreed that it was therefore not possible to either rule in or out future changes in the cash rate target. They agreed to reiterate their resolve to do what is necessary to return inflation to target.