Reserve Bank of Australia holds interest rates steady at 4.10%

The decision comes amid concerns over inflation and a period of below-trend growth in the Australian economy. Inflation is expected to decline to the 2–3 per cent target range by late 2025. However, the prices for many services and rent continue to rise, putting a strain on household budgets, governor Philip Lowe said in a statement.

The labour market remains tight, even as economic growth and employment are expected to grow below trend. This has led to a forecast of a gradual rise in the unemployment rate to around 4½ per cent by late next year.

The Board remains committed to reducing high inflation, which is seen as damaging to the economy and households. Medium-term inflation expectations remain consistent with the inflation target.

The meeting also noted uncertainties such as persistent service price inflation overseas and the lagging effects of monetary policy. Future monetary tightening may be necessary, depending on evolving data and risks. The Board pledges to closely monitor global economic developments, household spending, and inflation and labour market trends to make informed decisions.

ALCHEMPro News Desk (KD)