Australia's central bank decided to leave its key interest rate unchanged on Tuesday after a cumulative 350 basis points increase since last May.
The board of the Reserve Bank of Australia decided to leave the cash rate target unchanged at 3.60 percent. The outcome of the meeting matched economists' expectations. The board observed that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt.
The board took the decision to hold interest rates to provide additional time to assess the impact of the previous hikes to date and the economic outlook.
Nonetheless, the board said it expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target.
