Australia's Central Bank Pauses Rate Hike Decision

Australia's central bank, the Reserve Bank of Australia (RBA), considered raising interest rates to 4.4% in December but ultimately decided to keep the cash rate steady at 4.35% due to mixed economic data. The central bank's board noted encouraging signs of progress in inflation towards the target band of 2-3%, emphasizing the need for further data to assess the balance of risks and the potential for a rate rise in the future. Consumer price inflation in the third quarter was at 5.4%, significantly above the RBA's target range of 2-3%. The board also discussed the possibility of selling government bonds earlier to restrain demand and mentioned the benefits of choosing to sell the bonds directly to the government.