The Reserve Bank of Australia kept the cash rate unchanged at 4.1 percent, but the door is open for future hikes.
Outgoing governor Philip Lowe said Australian inflation had 'passed its peak', but further monetary policy may be needed to return inflation to target.
HSBC chief economist Paul Bloxham says the Australian economy is still running at full capacity- and it will take time to bring inflation down again.
LISTEN ABOVE

Enda Brady: UK correspondent on the additional calls for Sir Keir Starmer to resign
04:23

Paul Bloxham: HSBC Chief Economist ahead of Australia's 2026 federal budget
04:17

Jamie Mackay: The Country host on what the latest Rabobank agribusiness monthly report means for Kiwi farmers
04:46