Ella 
On Tuesday, following the December monetary policy meeting, Reserve Bank of Australia (RBA) board members decided to keep the official cash rate (OCR) unchanged at 4.35%.
This decision is in line with market expectations.
On Tuesday, following the December monetary policy meeting, Reserve Bank of Australia (RBA) board members decided to keep the official cash rate (OCR) unchanged at 4.35%.
This decision is in line with market expectations.
Reserve Bank of Australia Governor Michele Bullock issued a monetary policy statement, the main contents of which are as follows.
Whether further tightening of monetary policy is needed to ensure inflation returns to target within a reasonable time frame will depend on data and evolving risk assessments.
The Board of Governors remains firmly determined to return inflation to target.
The limited information on the domestic economy since the November meeting has been largely in line with expectations.
The outlook for household consumption also remains unclear.
The monthly indicator of inflation in October showed that inflation continued to slow, driven by the goods sector; however, the latest inflation data did not provide more information on services sector inflation.
Inflation expectations measures are consistent with the inflation target.
Labor market conditions also continue to gradually ease, although they remain tight.
Domestically, there is uncertainty about the lagging effects of monetary policy.
Raising interest rates helps create a more sustainable balance between aggregate supply and aggregate demand in the economy.
Keeping the cash rate unchanged at this meeting will allow time to assess the impact of rising interest rates on demand, inflation and the labor market.
