The Reserve Bank of Australia kept its official cash rate unchanged at 4.35 percent on Tuesday, marking the third straight hold. Australia's real GDP grew 0.3 percent in the March quarter while the unemployment rate reached 4.5 percent in May.
“RBA interest rates: Reserve Bank holds official cash rate at 4.35% as economy slows and unemployment rises”
Read at The Guardian →“Australia central bank keeps rates steady at 4.35% as inflation remains elevated”
Read at CNBC →No right-leaning sources covered this
The hold highlights costs of prior rate hikes through higher unemployment that harms marginalized groups and calls for fiscal supports rather than further tightening.
“Worker impacts and limits of monetary policy alone”
The unanimous hold correctly prioritizes long-term price stability over short-term stimulus amid external shocks and structural weaknesses.
“Sound money and avoidance of entrenched inflation”
Centralized rate setting overrides market signals and distorts voluntary saving and investment decisions.
“Monopoly control of base money and lack of accountability”
All three views accept the RBA's stated rationale without questioning the uncorroborated US-Iran claim or possible measurement distortions in the GDP and unemployment data.
“Groupthink on Phillips-curve trade-off and overlooked anomalies”
Ratings by MBFC