SYDNEY, Nov. 5 (Xinhua) -- The board of the Reserve Bank of Australia (RBA) announced on Tuesday that it would maintain the cash target rate at 4.35 percent.

Tuesday's decision marked 12 months since the RBA board increased rates by 0.25 percentage points in November 2023.

The Australian Broadcasting Corporation (ABC) reported that the decision was in line with the expectations of economists and analysts.

In a statement, the board noted that inflation has fallen substantially since its peak in 2022, but underlying inflation remains too high at 3.5 percent.

"While headline inflation has declined substantially and will remain lower for a time, underlying inflation is more indicative of inflation momentum, and it remains too high," it said.

Official data published in late October revealed Australia's headline rate of annual inflation dropped to 2.8 percent in the 12 months to the end of September, the first time the figure has been within the RBA's 2-3 percent target band since 2021.

The board said on Tuesday that it expects underlying inflation to return to the 2-3 percent range in mid to late 2025.

Treasurer Jim Chalmers said in a statement posted on social media that the decision was expected.

The RBA board will next meet in December. Enditem

Related

Go to Forum >>0 Comment(s)