Australia’s central bank kept its key interest rate unchanged on Tuesday following a cooling of inflation pressures and weaker household spending, while keeping the door ajar to future hikes.
The Reserve Bank left its cash rate at 4.1% for a second straight meeting, wrongfooting a majority of economists but in line with market expectations. The longer pause suggests the RBA may be approaching the end of its tightening cycle and sent the currency down to 66.68 US cents, while the rate-sensitive three-year government bond yield fell to the lowest since June 7.
Read More : Australia Extends Rate Pause for Second Consecutive Month as Prices Ease