FX.co ★ Australia Keeps Cash Rate As Expected

The Reserve Bank of Australia (RBA) decided to keep its cash rate steady at 4.1% during its April session, leaving borrowing costs unchanged. This decision follows a 25 basis point cut in February and aligns with market expectations. The central bank expressed increasing confidence that inflation is steadily approaching the midpoint of its 2-3% target range in a sustainable manner, as elevated interest rates are effectively helping to balance aggregate demand and supply. Additionally, the committee maintained the interest rate on Exchange Settlement balances at 4.0%.