RBA holds interest rates at 4.1% as markets predict cut soon after May election

Reserve Bank of Australia leaves cash rate unchanged amid hotly contested federal election campaign

• Election 2025 live updates: Australia federal election campaign
• Get our breaking news email, free app or daily news podcast

The Reserve Bank of Australia has left rates on hold at 4.1% in a widely anticipated decision that keeps the independent central bank on the sidelines amid a hotly contested election campaign.

In an accompanying statement that is likely to firm bets for a cut at the next meeting in May, the monetary policy board showed building confidence that inflation is returning to target – even if members remained “cautious about the outlook”.