Australia central bank keeps rates steady at 4.35% as inflation remains elevated

Michele Bullock, governor of the Reserve Bank of Australia (RBA), attends a news conference at the bank's head office in Sydney, Australia, on Tuesday, Dec. 9, 2025. Australia's central bank kept its key interest rate unchanged for a third straight meeting in a widely expected decision, while reiterating that future moves will hinge on incoming economic data. Photographer: Brendon Thorne/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images The Reserve Bank of Australia held rates at 4.35% Tuesday, while stating that it was ready to raise rates to manage price stability and full employment. The unanimous move was in line with economists polled by Reuters, and comes even as Canberra fights to tamp down inflation in the country. In its statement, the RBA said that inflation was "still too high," which warranted keeping the cash rate unchanged as it evaluates "the response to previous interest rate rises and the impact of the oil supply disruption." While the U.S. and Iran have reached an agreement to end the Iran war, the RBA said that resolution was still at an early stage and global oil supply issues will take some time to resolve, keeping energy prices and inflation elevated. Earlier this month, Australia reported its GDP expanded by 2.5% in the first three months this year, year on year, missing expectations and at the same rate as in the prior quarter . …