The Reserve Bank of Australia (RBA) met market expectations by keeping interest rates unchanged at 4.10% at its latest policy meeting.
The following are the main details taken from the meeting.
The RBA remains on the stance of returning inflation to target.
Some further tightening of monetary policy may be necessary.
Higher interest rates are necessary to create a more sustainable balance between supply and demand in the economy.
Policy makers still expect the economy to grow when inflation returns to the target range of 2%-3%.
As a result of that and the uncertainty surrounding the economic outlook, the RBA decided to keep rates unchanged this month.
It will give the RBA time to assess the impact of the rate hike and the economic outlook.
Any further tightening will depend on how the economy and inflation develop.
Inflation is still too high and will remain so for some time to come.
The outlook for household consumption remains a key factor in uncertainty.
The RBA remains wary of inflationary risks which are expected to persist.
Based on the RBA's follow-up statement, it can be seen that the central bank still wants to continue tightening.
Following the results, the initial reaction showed the Aussie dollar falling to around 0.6640 against the US dollar.
However, the decline is not significant, as the market is still confident that the RBA will raise interest rates again in August.
