Australian mortgage holders have let out a nationwide sigh upon the Reserve Bank’s announcement that interest rates will be staying put for the time being, at a 12-year high of 4.35 per cent.
The RBA met on Tuesday for the first time since March, noting that while inflation continues to moderate, it is declining more slowly than expected.
It has warned the economic outlook is uncertain and recent data has demonstrated that the process of returning inflation to the target range is unlikely to be smooth.
“The Board expects that it will be some time yet before inflation is sustainably in the target range and will remain vigilant to upside risks,” the bank’s statement read.
“The path of interest rates that will best ensure that inflation returns to target in a reasonable time frame remains uncertain and the Board is not ruling anything in or out,” it said in a statement explaining its May decision.
“The Board will rely upon the data and the evolving assessment of risks. In doing so, it will continue to pay close attention to developments in the global economy, trends in domestic demand, and the outlook for inflation and the labour market.”
Econom...
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