Australian Cash Rate Remains Unchanged Amid Backdrop of Rising Inflation

A pedestrian walks past the Reserve Back of Australia head office in Sydney, Australia, on Dec. 7, 2021. AAP Image/Mick Tsikas

The Reserve Bank of Australia (RBA) has decided to maintain the cash rate at 0.1 percent and end its bond purchase program on Feb. 10 at the first board meeting of 2022.

“As the Board has stated previously, it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range,” RBA Governor Philip Lowe said in the monetary policy decision statement. “While inflation has picked up, it is too early to conclude that it is sustainably within the target band.”