Australia Interest Rate

It was not yet possible for the Reserve Bank of Australia (RBA) to determine the timing of the next move in interest rates, as the board emphasized the need to remain data-dependent and alert to evolving risks, minutes from the April meeting showed. During the session, the central bank kept the cash rate at 4.35%, noting that inflation continued to ease gradually while the labour market remained tight. Meanwhile, financial conditions were seen as somewhat restrictive, and the economic outlook was broadly in line with earlier forecasts. Members highlighted two-sided risks: domestic demand and wages could push inflation higher, while persistent labour market softness or weak consumption could accelerate disinflation. They also noted that the energy rebate extension announced in the federal budget would impact the profile of headline inflation in 2025 and 2026. Globally, risks had increased, particularly from trade policy uncertainty, though their effect on Australia remained limited.