RBA keeps interest rate unchanged at 4.35%

The Reserve Bank of Australia kept interest rates unchanged at 4.35%, in line with market expectations. The Reserve Bank of Australia stated that demand exceeds economic supply capacity, which is beyond expectations. The bank is determined to restore the Consumer Price Index (CPI) to the target level and remains vigilant about the risks of inflation. Inflation remains higher than the target, indicating sustainability. The core inflation level is still too high, and necessary measures will be taken to achieve the inflation target. In addition, core inflation is expected to slow down more slowly than previously expected, and is expected to fall below 3% by the end of 2025. At the same time, the bank raised its forecasts for Gross Domestic Product (GDP) growth, unemployment rate, and core inflation. (Jinshi)