Australia's Monetary Policy Board decided to maintain the cash rate target at 3.85 per cent during its meeting Tuesday, citing continued moderation in inflation and broadly consistent economic conditions, according to an official statement. Headline inflation has eased significantly from its 2022 peak, aided by earlier rate hikes aimed at restoring balance between supply and demand. In the March quarter, headline inflation was within the target range, and trimmed mean inflation stood at 2.9 per cent. While recent data from the monthly Consumer Price Index (CPI) Indicator pointed to slightly stronger-than-expected inflation for the June quarter, the figures remain largely in line with forecasts. The board noted that with the policy rate already 50 basis points lower than it was five months ago and economic activity evolving as anticipated, it would wait for further confirmation that inflation is sustainably on track to reach the 2.5 per cent midpoint. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
