SYDNEY, Aug. 11 (Xinhua) -- Australia's central bank on Tuesday voted to keep the cash rate unchanged at 4.35 percent in line with economists' expectations.
The Reserve Bank of Australia (RBA) said the decision was made unanimously by its Monetary Policy Board during a two-day meeting in Sydney.
The Australian Associated Press reported earlier on Tuesday that money markets and economists were in near-unanimous agreement that the board would keep the key rate on hold following three rises of 0.25 percentage points in the first half of 2026.
The RBA's decision statement said that the impact of the conflict in the Middle East on inflation has so far been less than expected, but that headline inflation remains too high.
According to official figures, Australia's annual rate of headline inflation fell from 4.0 percent in May to 3.8 percent in June. The RBA targets annual inflation of 2-3 percent.
The Monetary Policy Board said on Tuesday that resolution of the Middle East conflict remains uncertain and there are scenarios where inflation is higher and economic activity lower than forecast.
"Global oil supply will take time to recover, maintaining upward pressure on global energy prices and inflation, in which case domestic inflationary pressures could be higher than expected. A period of prolonged uncertainty may also cause growth to be lower overseas and in Australia," it said.
The board will next meet in late September. ■