RBA Holds Cash Rate at 4.10% in April

The Reserve Bank of Australia (RBA) has opted to leave its cash rate unchanged at 4.10% during its April meeting, a move that was in line with market expectations.

This follows a 25-basis point rate cut in February and reflects the central bank’s continued efforts to strike a balance between managing inflation and supporting economic growth.

The RBA signaled that the current monetary policy settings remain appropriate to respond flexibly to any global or domestic developments that may significantly affect Australia’s economic activity or inflation trajectory.

Inflation Improves but Uncertainty Remains

The central bank noted growing confidence that inflation is moving sustainably toward the 2–3% target range, thanks in part to the dampening effect of higher interest rates on consumer demand. These conditions have helped restore the balance between aggregate demand and supply across the economy.

However, the RBA emphasized that a degree of uncertainty still surrounds the inflation outlook and domestic economic performance, citing evolving dynamics both at home and abroad. The Bank remains cautious as it monitors shifting conditions that could influence inflationary pressures or economic momentum.

Geopolitical and Global Trade Risks in Focus

On the international front, the RBA highlighted ongoing geopolitical tensions and policy uncertainties, particularly concerns around U.S. trade measures such as tariffs, as factors that could have unforeseen effects on Australia’s economy. These risks underscore the central bank’s preparedness to adjust policy if global events begin to materially impact national growth or stability.

Exchange Settlement Rate Unchanged at 4.0%

In addition to holding the cash rate, the RBA also kept the interest rate on Exchange Settlement balances steady at 4.0%. This decision aligns with the Bank’s broader strategy of maintaining stability and flexibility as it navigates a complex and volatile global economic environment.

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