Australia keeps interest rates unchanged

By Tuba Ongun

ANKARA (AA) – The Reserve Bank of Australia on Tuesday kept its cash rate constant at 4.1% in its July meeting.

The central bank raised the cash rate by 25 basis points in its previous meeting in June, a total hike of 400 basis points since May 2022.

It also kept the interest rate on exchange settlement balances unchanged at 4.0%.

The move will provide time more time to assess the impact of previous rises, the state of the economy and the economic outlook, according to the bank.

The inflation is still "too high" and will remain so for some time, the bank said, adding some further tightening of monetary policy may be required to ensure that inflation returns to the target of between 2% to 3% in a reasonable timeframe.

The annual inflation rate in Australia fell to 7% in the first quarter of 2023 from an over 30-year high of 7.8% in the previous three-month period.

"The Board remains resolute in its determination to return inflation to the target and will do what is necessary to achieve that," read the statement.