BlockBeats News, September 30th, the Reserve Bank of Australia on Tuesday kept the cash rate unchanged at the expected 3.60%, stating that recent data indicates that third-quarter inflation may be higher than expected and the economic outlook remains uncertain. The RBA believes that maintaining a cautious policy stance is appropriate but is well-positioned to respond to developments in the international situation.
After a 25 basis point rate cut in August, the market believes that the likelihood of further easing this week is very low, and with the monthly Consumer Price Index higher, the market believes it is prudent to wait for the full third-quarter inflation report to be released at the end of October. (FX168)
