The Reserve Bank of Australia, under the new governorship of Michele Bullock, has held interest rates steady at 4.1 per cent.
This decision aligns with the expectations of most analysts.
This means there is once again no RBA interest rate rise for October.
The market, which has been increasingly less reactive to interest rate decisions, was in the red this morning, with the ASX200 down nearly 1.6 per cent heading into lunchtime trade.
As predicted by markets when Michele Bullock was first announced as governor – the AUD/USD exchange rate did not shift at the time – Ms Bullock has shown she does not mean to rock the boat or differ from Philip Lowe’s overall tenor.
“Today’s meeting was Governor Bullock’s first in charge, and the board has opted for a strong sense of continuity in its communications. Today’s statement is identical in several passages to last month’s,” Oxford Economics head of macroeconomic forecasting Sean Langcake observed.
NAB analysts also called a pause in their pre-market briefing on Tuesday.
“The economy has outperformed expectations over 2023 to date, but it is slowing appreciably,” Langcake added.
The RBA noted in its statement that inflation still remains too high.