The Reserve Bank of Australia maintained its monetary policy stance as Governor Michele Bullock cited persistent domestic inflation and slowing economic growth. The decision comes as headline inflation remains above the RBA target band of 2.0% to 3.0%, compared with historical periods of lower price pressures. "Yes, we have a domestic, homegrown inflation problem," said Reserve Bank of Australia Governor Michele Bullock. The central bank noted that supply constraints could limit potential economic growth to approximately 2.0% over the medium term. The RBA has adjusted its communication strategy to focus on balanced activity risks while monitoring persistent upside risks to inflation.
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