Concerns Mount as Australia's Central Bank Hits Pause with Restrictive Policy Stance

Australia’s central bank decided to keep interest rates steady this month as policy was clearly restrictive and there was a risk a squeeze on household finances could lead to a sharp downturn and higher unemployment.

However, the bank retained a warning that some tightening may still be required to bring inflation to heel, wary that the wider effects on inflation from higher rents, weak productivity and higher electricity prices had not been fully captured.

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