Australia's Decision to Hold Rate at 4.1% Driven by "Stronger" Outlook

Australia’s central bank said the case to leave interest rates unchanged this month was the “stronger one” following a series of line-ball decisions as policymakers focused on the long lags of transmission and the risk of a sharper economic downturn.

The Reserve Bank’s board debated raising the cash rate for a third straight month but decided to stand pat at 4.1%, minutes of the July 4 meeting showed Tuesday. The decision came amid concerns the 4 percentage points of cumulative hikes over the past year are already beginning to hurt the economy.

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