The Reserve Bank maintains interest rates, awaiting a decrease in inflation.

The Reserve Bank has kept official interest rates unchanged but hinted at a possible increase later this year if inflation doesn’t subside.

Following its two-day meeting in Sydney, the bank board announced on Tuesday afternoon that the official cash rate would remain at 4.35 percent, unchanged since November last year. Before the meeting— the first since the March quarter national accounts indicated minimal economic growth—financial markets and economists anticipated no change, as the bank has just four more official meetings this year.

Since the last board meeting, the unemployment rate has slightly decreased to 4 percent, though job advertisements have continued to decline. Additionally, the Fair Work Commission announced a 3.75 percent increase in the minimum wage, effective from July 1.

This meeting is the final one before the implementation of the $23 billion stage 3 tax cuts in the new financial year.

Bank governor Michele Bullock will explain the RBA’s decision at a press conference at 3:30 pm.