A Sydney ferry passes the Opera House and skyline of the central business district area on May 12, 2020 in Sydney, Australia.
James D. Morgan | Getty Images
The Reserve Bank of Australia held interest rates at 4.1% for a second month on Tuesday, in another reprieve for mortgage holders after inflation recently slowed more than expected.
Even though Australian inflation slowed more than expected in the second quarter, its consumer price index still rose 6% in the second quarter from a year ago. That’s still well above the RBA’s 2% target, but slower than the 7% increase recorded in the first quarter.
The Australian central bank has hiked interest rates by a cumulative 400 basis points since May last year to its highest in 11 years. The country has been grappling with surging inflation as economic activity picked up after the height of the Covid-19 pandemic.
Tuesday’s RBA policy meeting is Philip Lowe’s penultimate meeting as governor.
Michele Bullock will succeed Lowe as RBA governor when he finishes a seven-year term in office on Sept. 17.
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