The Reserve Bank of Australia (RBA) kept its cash rate target unchanged at 4.10% following the quarter point cut in February.

• The RBA remains cautious on the inflation outlook as “higher interest rates have been working to bring aggregate demand and supply closer towards balance.” It will remain cautious until “inflation returns to the midpoint of the target band on a sustainable basis.”
• The RBA remains worried about wage pressures: “Wage pressures have eased a little more than expected but productivity growth has not picked up and growth in unit labour costs remains high.”
• The RBA also noted “pronounced” uncertain globally, pointing to US tariffs as a main source of that uncertainty: “…recent announcements from the United States on tariffs are having an impact on confidence globally and this would likely be amplified if the scope of tariffs widens, or other countries take retaliatory measures.”
• Monetary policy “remains restrictive” and a ”continued decline in underlying inflation is welcome.”