RBA Holds Rates Steady, Emphasizes Inflation Concerns
The Reserve Bank of Australia (RBA) left its benchmark interest rate unchanged at 4.35% on Tuesday, signaling a sustained restrictive monetary stance due to persistent inflation concerns. The decision aligns with market expectations, following the RBA’s last rate hike over a year ago.
Inflation Remains RBA’s Top Priority
The RBA reinforced its commitment to lowering inflation to its target range of 2%–3%, stating that “policy will need to be sufficiently restrictive until inflation is sustainably moving towards the target.” While the latest Consumer Price Index (CPI) data showed a decrease within the RBA’s target range, underlying inflation remains stubbornly high, with a sustainable drop only anticipated by 2026.
Economic Growth Slows Amid High Rates
Australia’s economy has cooled in recent quarters due to rising borrowing costs, yet inflation remains high, driven by a strong labor market, elevated housing expenses, and persistent service costs. Despite economic pressures, the RBA has not signaled any shift towards easing monetary policy, diverging from other central banks like the U.S. Federal Reserve, which has started cutting rates.
Market Reactions
Following the RBA’s decision, the Australian dollar gained slightly, with the AUD/USD pair rising by 0.1%, as investors anticipate higher rates for an extended period. However, Australian stocks continued to struggle, with the ASX 200 index trading 0.4% lower.


Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Thailand Inflation Remains Negative for 10th Straight Month in January
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 



