RBA keeps interest rates on hold at 4.35%

Inflation remains stubbornly high

The Reserve Bank of Australia (RBA) has announced that it will keep interest rates on hold at 4.35% despite rising inflation.

This is the fourth consecutive meeting that the RBA has left rates unchanged.

The RBA's decision comes as inflation in Australia remains stubbornly high. The latest data from the Australian Bureau of Statistics showed that inflation rose by 7.8% in the year to December 2022. This is the highest level of inflation in Australia since 1990.

The RBA has said that it is concerned about the high level of inflation and that it is committed to bringing inflation back to its target of 2-3%.

However, the RBA has also said that it is mindful of the impact that raising interest rates will have on the economy.

The RBA has said that it will continue to monitor the economy closely and that it will raise interest rates again if it believes that inflation is not returning to its target.

Conclusion

The RBA's decision to keep interest rates on hold is a sign that the central bank is taking a cautious approach to fighting inflation. The RBA is aware of the risks of raising interest rates too quickly, but it is also aware of the risks of allowing inflation to remain high.

The RBA's decision is likely to be welcomed by businesses and consumers, but it is also likely to disappoint some economists who believe that the RBA should be doing more to fight inflation.

Only time will tell whether the RBA's decision was the right one.