SYDNEY, Dec. 10 (Xinhua) -- Australia's central bank on Tuesday kept its key interest rate on hold for a ninth meeting in a row.
The Reserve Bank of Australia (RBA) decided to keep the cash rate target unchanged at 4.35 percent, where it has been since November 2023.
It meant that interest rates will remain on hold until 2025, with the RBA board to next consider a cut on Feb. 18.
Announcing its decision, the bank said that underlying inflation remained too high despite a substantial fall since the peak in 2022.
It said that underlying inflation was at around 3.5 percent, compared to headline inflation of 2.1 percent in the year to October. The RBA's target is to keep inflation between 2 percent and 3 percent.
Sustainably returning inflation to target within a reasonable timeframe remained the bank's highest priority, it said in its monetary policy decision statement.
"While headline inflation has declined substantially and will remain lower for a time, underlying inflation is more indicative of inflation momentum, and it remains too high," the statement said.
Forecasts published by the bank in November projected that inflation will not return sustainably to the midpoint of the central bank's target until 2026.
Tuesday's decision was in line with economists' expectations.
All of Australia's "big four" banks have told customers that they expected the RBA to cut the cash rate target in the first half of 2025. ■
