Reserve Bank of Australia Holds Steady

The Reserve Bank of Australia maintained the cash rate at 4.35% in a unanimous decision. ING expects the central bank to remain on hold for the rest of the year as it navigates sticky inflation.

Key Takeaways

• 1.The RBA kept the cash rate unchanged at 4.35%, maintaining a data-dependent, restrictive stance as it balances sticky inflation against a cooling economy.
• 2.ING revised its AUD/USD year-end target to 0.73, citing a more hawkish Fed outlook that keeps upward pressure on the USD in the short term.

Table of Contents

• Reserve Bank of Australia holds steady, and its tone remains even-handed
• RBA Policy Reaction: Hold at 4.35% in line with expectations
• Sticky inflation but broadly in line with base case
• Holding pattern not a hindrance to AUD

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