Australia Holds Key Interest Rate At 4.35%

(RTTNews) - Australia's central bank left its interest rate unchanged at a 12-year high, as widely expected, on Thursday.

The policy board headed by Michele Bullock decided to hold the cash rate target at 4.35 percent.

The interest rate paid on Exchange Settlement balances was also kept unchanged at 4.25 percent.

Policymakers observed that the economic outlook is uncertain and recent data have demonstrated that the process of returning inflation to target has been slow and bumpy.

The bank repeatedly said that returning inflation to target within a reasonable timeframe remains the highest priority.

The policy will need to be sufficiently restrictive until the board is confident that inflation is moving sustainably towards the target range, the bank added.