The Reserve Bank of Australia (RBA) on Tuesday decided to leave the key interest rate at 4.1% per annum, which was the highest value since the beginning of 2012. This decision came as a surprise to analysts, most of whom expected a rate hike of 25 basis points. At the previous meeting, the RBA has already raised the cost of borrowing by 25 bps. And since May last year, the Australian Central Bank has increased the rate by a total of 400 bps. The central bank's management explained that it needs more time to assess the impact of previous increases on the economy and added that inflation in Australia peaked and fell to 5.6% in May.
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