The Reserve Bank of Australia kept its monetary policy unchanged and kept interest rates at 3.60% at the bank’s meeting that took place this morning, Tuesday, the fourth of April, after they settled at their highest levels since May 2012.

And the interest statement issued by the bank stated that the decision comes after cumulative increases in interest rates that amounted to 3 percentage points since May of last year, but the board believes that monetary policy is working late and that the full impact of these increases has not been felt, and therefore the bank has taken a decision to keep interest rates constant.

This month to evaluate the effects of previous increases. Inflation in Australia is expected to have reached its peak and is expected to start declining during the coming months.

Demand in Australia is expected to drop to 3% in mid-2025, and the Council’s priority is to return inflation to the target. Gross domestic product is expected to slow over the next two years while the labor market remains tight, unemployment rates are at their lowest levels in 50 years, and wages continue to increase in response to the labor market and rising inflation.

The bank affirmed that it is committed to returning inflation to the bank’s target range of 2-3%, stressing that there may be a need for more tightening in monetary policy to ensure that inflation returns to the target.

The reaction of the Australian dollar was negative, and the pair fell by more than 50 points against the US dollar, as some expectations in the markets saw a greater possibility for the bank to raise interest rates by 25 basis points today.