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The Reserve Bank of Australia has made a shock decision to leave interest rates unchanged in July, despite widespread predictions they would deliver back-to-back cuts. The RBA held the official cash rate at 3.85% on Tuesday, citing uncertainty in the global economy and "slightly stronger than expected" inflation. The move leaves home loan borrowers out in the cold this winter, with many havin...
Underlying inflation is moderating. 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. In the December quarter underlying inflation was 3.2 per cent, which suggests inflationary pressures are easing a little more quickly than expected. There has also been continued subdued growth in ...