Lead

The Reserve Bank of Australia has decided to keep interest rates on hold at 4.35 per cent, according to a statement from the central bank. The decision follows recent data indicating that Australia's economy has lost momentum and that the unemployment rate has risen.

The Reserve Bank board's June meeting concluded with the cash rate remaining unchanged, a move widely anticipated ahead of the announcement. The decision was unanimous, and the official cash rate will stay at 4.35 per cent for the next two months, with the next meeting scheduled for August 10-11.

Coverage comparison

ABC Australia reported on the lead-up to the decision, noting that the Reserve Bank board was expected to keep rates steady at 4.35 per cent, following three consecutive rate hikes earlier in the year. The broadcaster also highlighted the impact of the US-Iran ceasefire deal, which had boosted investor sentiment and contributed to a record close for the Dow Jones Industrial Average.

In its report on the outcome, ABC Australia confirmed that the Reserve Bank had indeed kept rates on hold, citing the slowing economy and rising unemployment as key factors. The report also noted that underlying inflation remains too high, which influenced the decision to maintain current rates.

Key claims

  • The Reserve Bank board's decision on interest rates was announced at 2:30pm AEST after its two-day June meeting.
  • Interest rates were widely forecast to remain unchanged at 4.35 per cent, with expectations overwhelmingly for a hold.
  • The US-Iran ceasefire deal was reported to have boosted sentiment among investors, with the Dow Jones Industrial Average climbing to a record close.
  • Data from Cotality indicated that final auction results were pointing to a cooling property market, described by one reporter as a potential "buyers strike."
  • Recent economic data showed that Australia's economy has lost momentum and that the unemployment rate has risen.
  • Underlying inflation remains too high, according to the Reserve Bank, prompting the decision to keep rates steady.

Perspectives

  • Reserve Bank of Australia: The central bank's decision to hold rates at 4.35 per cent reflects its assessment that the economy is losing momentum and unemployment is rising, while underlying inflation remains elevated. The bank has chosen to wait and see how the economy performs in the coming weeks.
  • Economists and analysts: Some prominent economists have shifted their forecasts toward the central bank remaining on hold for the foreseeable future, with some now tipping the next move to be a decrease in rates.