Australia’s central bank kept its benchmark interest rate at 4.35%, marking the eighth consecutive hold, in line with expectations.

While headline inflation fell to 2.8% in Q3 due to temporary declines in fuel and electricity costs, underlying inflation remains high at 3.5%.

The Reserve Bank of Australia (RBA) doesn’t expect inflation to reach its 2%-3% target midpoint until 2026, CNBC has reported.

The RBA noted uncertainties around inflation, driven by domestic labor and productivity trends, household spending, and global geopolitical risks.

Written by B.C. Begley