％Germany Government Bond 10Y
DE-10Y
Mentioned
Impact on stocks 2
Others
％ECB rates
ECBRATES
Mentioned
RBA holds rates on restrictive policy concerns despite persistent inflation
MacroDigital Finance
The Reserve Bank of Australia kept its cash rate unchanged at its August meeting, with minutes showing policymakers judged existing policy already somewhat restrictive despite underlying inflation remaining too high. RBA staff project inflation will only return to target by late 2027, with risks tilted to the upside due to Middle East oil supply concerns, resilient demand, elevated corporate cost pass-through, and expanding AI and data-center investments. The central bank cited rising unemployment and downside risks to demand in its decision, while explicitly reaffirming readiness to hike if upside inflation risks materialize. Australian equities advanced following the release, with the S&P/ASX 200 index rising 0.5% to 9,148 in Tuesday morning trade, and the Australian dollar remained firm above $0.71 near an eleven-week high.