The Reserve Bank of Australia’s monetary policy board’s unanimous decision to hold the 3.6 per cent cash rate steady was a foregone conclusion after last week’s shock quarterly inflation spike that blindsided markets and cancelled the betting on a Melbourne Cup day rate cut.
Tuesday’s Statement on Monetary Policy partly attributed the materially higher than forecast 3 per cent print in annual underlying inflation to “temporary factors” such as price hikes for travel, council rates, and fuel.
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