Australia Holds Interest Rates Steady Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) kept the benchmark interest rate at 4.35%, citing substantial decreases in headline inflation, now at 2.8%. However, the underlying inflation remains high at 3.5%, with forecasts not predicting a return to the target midpoint of 2.5% until 2026. RBA Governor Michele Bullock highlights the challenges posed by weak private sector demand and geopolitical uncertainties, while contrasting approaches between RBA and government perspectives on economic growth are evident. Opposition critics address the government's handling of inflation as the country grapples with unique economic pressures.