At its monetary policy meeting, the Reserve Bank of Australia (RBA) Board decided to leave the cash rate target unchanged at 4.35 % and the interest rate paid on Exchange Settlement balances unchanged at 4.25 % . The three key takeaways from the September 24th meeting remain unchanged.

1. Inflation remains above target and is proving persistent.

2. The outlook remains highly uncertain.

3. Returning inflation to target is the RBA’s priority.

Let’s unpack each of the key points from the media release.

Reserve Bank Australia Holds the Cash rate at 4.35%

At its meeting today, the Board of the Reserve Bank of Australia decided to leave the cash rate target unchanged at 4.35 per cent, indicating stubbornness in the inflation to remain higher than the target forecast. In monetary policy, the board also decided to maintain the interest rate paid on Exchange Settlement balances at 4.25 percent, reflecting a cautious approach to financial conditions in the current economic environment.

What are the key points of today’s RBA Monetary Decision?

• Inflation remains above target and is proving persistent.

• The outlook remains highly uncertain.

• Returning inflation to target is the priority.