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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting caution over price stability, the Reserve Bank of Australia (RBA) Monetary Policy Board unanimously decided to leave the cash rate unchanged at 4.35%. The central bank emphasized that the rate-hiking cycle may not be over yet, citing persistent headline and underlying inflation pressures. According to reports, the RBA leaned against the idea of ending its tightening bias until inflation cools significantly.
This decision comes as major economies show divergent inflation paths; market data showed Germany's annual CPI cooling to 2.6% in June from 2.9% previously, while India's inflation rate stood at 3.93% per data from June 12, 2026. Regionally, New Zealand reported a 1.7% rebound in retail sales for June, reinforcing the broader pressure on central banks in the Oceania region to maintain restrictive monetary stances.
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Sign InTraders should watch the Australian Dollar (AUD) levels, which found support from the bank's hawkish rhetoric. Looking ahead at the economic calendar, upcoming speeches from global policymakers, including the ECB’s Lagarde, will be critical for broader market sentiment. Additionally, upcoming consumer confidence data will serve as a key catalyst to gauge the impact of sustained high interest rates on domestic consumption.