Australia's central bank pauses rate hikes amid economic slowdown

Odaily reported that for the first time this year, the Reserve Bank of Australia (RBA) kept its key interest rate unchanged, as the three previous rate hikes had begun to pressure the Australian economy. On Tuesday, the nine-member board voted unanimously to hold the cash rate at 4.35%, in line with expectations. RBA Governor Michele Bullock will hold a press conference later, and investors will focus on whether policymakers will enter a prolonged pause or maintain a tightening stance.

In its statement, the RBA said: “Since the start of the year, the cash rate target has been raised three times, and the current financial environment is significantly tighter than before, with signs of an economic slowdown emerging as expected.” This rate pause marks a moderation in the RBA's aggressive tightening policy, which previously set it apart among major central banks. Although policymakers continue to warn that inflation remains too high and that elevated energy costs related to conflicts with Iran pose upside risks, recent soft data has provided the central bank with room to hold steady and assess the situation. (Jin10)