The Reserve Bank of Australia (RBA) decided to keep interest rates unchanged at 4.10% as expected by the market.
The outgoing RBA governor, Philip Lowe, presented his final monetary policy statement.
The following are the main details taken from the meeting.
The RBA is still firm with its position to return inflation to the target.
Higher interest rates seek to create a more sustainable balance between supply and demand in the economy.
Inflation is down, the labor market remains strong and the economy is operating at a high level of capacity utilization.
The 'Pause' will provide more time to assess the impact of interest rate hikes so far and the economic outlook.
Inflation is still too high and will remain so for some time to come.
There is increasing uncertainty around China's economic outlook.
Prices in most services are increasing rapidly, rent inflation is also increasing.
The outlook for household consumption remains a key factor in uncertainty.
Based on the RBA's follow-up statement, it can be seen that the central bank is trying to give time to see the impact of interest rate hikes on the current economy.
Following the decision, the initial reaction showed the Aussie dollar falling to around 0.6388 against the US dollar, in addition to being pressured by the uncertainty of sentiment from China.
