The Reserve Bank of Australia’s Board of Directors decided at its meeting this morning, Tuesday, December 10, to keep monetary policy and current interest rates at 4.35% unchanged as expected.

The bank’s statement issued for interest stated that inflation has declined significantly since its peak in 2022, but core inflation remains high at 3.5% and remains far from the midpoint of the bank’s target of 2.5%.

Reserve Bank of Australia keeps monetary policy unchangedAccording to the bank’s latest forecasts, the bank does not expect to reach these levels until 2026. The bank’s governor, Bullock, stated that the board of directors did not consider cutting interest rates today, while market expectations indicate that the beginning of the easing cycle and cutting interest rates may begin in the second quarter of next year or April 1 by 25 basis points.