Australian Broadcasting Corporation
The Reserve Bank has kept interest rates on hold at 4.35 per cent, in a unanimous decision.
The move comes after headline inflation cooled a bit in June, and property prices declined by a little more than anticipated in recent months.
It also comes after economists have been warning that underlying inflation is still too high, with some saying that they expect interest rates to have to rise again, at some point, to squeeze inflation out of the economy.
But the RBA’s latest forecasts, also released today, show a more upbeat picture than the bank’s last forecasts published in May.
They suggest inflation may have peaked a lot lower than the RBA previously feared.
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