The Reserve Bank of Australia on Tuesday retained its benchmark cash rate unchanged at 2.5 percent as expected, saying that interest rate stability is the most "prudent course" for monetary policy at present.
In a statement today, Governor Glenn Stevens said that the bank's monetary policy "is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target."
"On present indications, the most prudent course is likely to be a period of stability in interest rates," he noted.
The Reserve Bank Board expects inflation to be somewhat higher than forecast three months ago, but still consistent with the 2-3 percent target over the next two years, Stevens noted.
He also pointed out that the exchange rate had declined further, which, if sustained, would assist in achieving balanced growth in the economy.
The RBA expects growth to remain below trend for a time yet and unemployment to rise further before it peaks.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.