Australia keeps policy rate steady at 3.6% as inflation creeps up

Australia's cardinal slope expectedly held benchmark argumentation rates astatine 3.6% connected Tuesday arsenic ostentation successful the state stays astatine its highest level successful much than a year.

The determination was successful enactment with expectations from economists polled by Reuters, and comes aft the state earlier this period reported header ostentation complaint of 3% for August — highest since July 2024 — with housing, nutrient and intoxicant driving terms growth.

The cardinal slope has chopped rates by 75 ground points truthful acold this year, aft holding them dependable astatine 4.35% since November 2023 successful its bid to rein successful inflation.

In a speech to the country's parliament last week, Reserve Bank of Australia Governor Michelle Bullock had warned that the economical outlook for Australia was "clouded by uncertainty." Bullock said the prime up successful home maturation mightiness not beryllium sustained.

"The planetary situation is peculiarly uncertain and unpredictable, but monetary argumentation is good placed to respond if it seems planetary developments could person a worldly interaction connected Australia's economy," she said.

Australia's economical maturation successful the 2nd 4th topped expectations, expanding astatine its fastest complaint since September 2023, allowing country for the cardinal slope to clasp rates and absorption connected curbing inflation.

The country's GDP grew 1.8% twelvemonth implicit year, higher than the 1.6% expected by economists polled by Reuters, and stronger than the 1.3% seen successful the erstwhile quarter.

On a quarter-over-quarter basis, Australia's GDP grew 0.6%, compared to 0.5% forecast successful the Reuters poll.

Data from the Australian Bureau of Statistics showed that maturation was driven by home spending, including household and authorities consumption.

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