RBA leaves rates unchanged, but warns inflation risks still remain

19th Mar 2024 07:34

(Sharecast News) - Australia's central bank left interest rates unchanged on Tuesday, as expected, but governor Michele Bullock warned that inflation remained at high levels.

The Reserve Bank of Australia left its cash rate unchanged for a third meeting in a row at 4.35%.

"First of all, we're making progress in our fight against inflation but it does remain high. As we have discussed before ... it is a challenge. It hurts everyone," Bullock told reporters.

"That is why it is so important that we get inflation back into a target band of 2%-3%. Recent data suggests we are on the right track but to best ensure it gets back to target remains uncertain."

"What we need is a greater confidence that inflation will return to the target band in a reasonable timeframe and stay there so domestic data over recent weeks has been larger as expected. The board believes the risks in the outlook are finely balanced and it is too soon to rule anything in or out."

Reporting by Frank Prenesti for Sharecast.com