RBA Sticks to Its Guns: Interest Rates Unchanged Amidst Political Pressure

RBA says inflation has significantly decreased since its 2022 peak, thanks to higher interest rates that have aligned aggregate demand and supply.

A man walks past the Reserve Bank of Australia in the central business district of Sydney on June 7, 2022. - Australia's central bank raised interest rates by a higher-than-expected half percentage point on June 7 and warned of more increases, trying to rein in "significantly" increased inflation. (Photo by Muhammad FAROOQ / AFP) Photo by MUHAMMAD FAROOQ/AFP via Getty Images

Despite immense political pressure to cut interest rates, the Reserve Bank of Australia (RBA) did not budge.

The Board announced on Sept. 24 that it decided to leave the cash rate target unchanged at 4.35 percent, and the interest rate paid on Exchange Settlement balances unchanged at 4.25 percent.