New York Mellon: The Reserve Bank of Australia maintains a tightening bias while keeping interest rates unchanged.

The Reserve Bank of Australia has unanimously decided to keep the overnight cash rate unchanged, achieving a cautious balance in its policy message. New York Mellon macro strategist Wee Khoon Chong stated that the central bank believes interest rates are "somewhat restrictive," but emphasized that the overall inflation rate remains excessively high and may stay elevated until the end of 2027, with risks still tilted to the upside. He added that the Reserve Bank of Australia maintains a tightening bias and reiterated its willingness to further raise interest rates if the inflationary upside risks materialize.