The Reserve Bank of Australia (RBA) decided to maintain the cash rate at its current level following its November policy meeting. The RBA assessed that despite improving financial conditions, inflationary pressures remain in the economy, particularly with recovering private demand and a slightly tighter labor market. The RBA Board also recognized that the full impact of the previous rate cut had not yet been fully felt, choosing to remain cautious and update its outlook based on evolving data.

The RBA also emphasized the importance of monitoring developments in the global economy, financial markets, domestic demand trends, and the inflation outlook. Despite increasing uncertainty about the economic outlook, the Board remains focused on its mandate to achieve price stability and full employment. This decision demonstrates that despite the recovery, the RBA remains vigilant about potential risks that could impact the Australian economy going forward. (az)

Source: Newsmaker.id