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The Reserve Bank of Australia has paused its rate hikes amid an economic slowdown
Svmuu News: Given that the previous three rate hikes have begun to put pressure on the Australian economy, the Reserve Bank of Australia (RBA) kept its key interest rate unchanged for the first time this year. On Tuesday, the nine-member board voted unanimously to keep the cash rate at 4.35%, in line with expectations. RBA Governor Brok will hold a press conference later today, and investors will be watching to see whether policymakers will enter a prolonged pause or continue to maintain a hawkish stance. In its statement, the RBA said: “The cash rate target has been raised three times since the start of the year. Financial conditions are now tighter than before, and signs of an economic slowdown have emerged as expected.” This pause in rate hikes marks a shift in the RBA’s aggressive tightening policy, which had previously set the bank apart from other major central banks. Although policymakers continue to warn that inflation remains too high and that soaring energy costs linked to the war in Iran pose upside risks, recent softening data has given the central bank room to stand pat and assess the situation. (Jin Shi)
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