RBA holds interest rates at 4.1% as markets predict cut soon after May election

The Reserve Bank of Australia has left rates on hold at 4.1% in a widely anticipated decision that keeps the independent central bank on the sidelines amid a hotly contested election campaign. In an accompanying statement that is likely to firm bets for a cut at the next meeting in May, the monetary policy board showed building confidence that inflation is returning to target – even if members remained “cautious about the outlook”. “Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the statement

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