Reserve Bank of Australia (RBA) Decision

On Tuesday, the Reserve Bank of Australia (RBA) announced its decision to maintain steady rates, as widely anticipated by market observers. The cash rate and the interest rate on Exchange Settlement balances will remain unchanged at 4.35% and 4.25%, respectively.

This time around, the RBA seemed to have adopted a softer tone in its policy statement. Notably, the bank omitted its usual cautionary note of "not ruling anything in or out," and also removed a line from its November statement that emphasized the need for restrictive policies. Instead, the RBA expressed confidence that inflation is moving sustainably towards its target, indicating a potential shift in its policy approach.