Reserve Bank Holds Interest Rates at 3.6% Amid Inflation Warning

The Reserve Bank of Australia has decided to keep interest rates steady at 3.6% while warning of rising inflation, expected to reach 3.7% by June next year, driven by excess demand in the economy. Governor Michele Bullock emphasized that addressing inflation is now prioritized over reducing unemployment, currently at 4.5%. The RBA forecasts underlying inflation at 3.2% by December and noted that current economic signals indicate a tighter financial condition. Treasurer Jim Chalmers stated the decision was anticipated, highlighting progress in reducing inflation since previous government leadership.

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