Discomfort over inflation led RBA to hold

Despite signs that domestic demand is weakening, Reserve Bank of Australia opted to leave rates at a 12-year high of 7.25% in May on the back of "uncomfortably high" inflation figures.

"Board members noted that there was further evidence that the growth of domestic demand had moderated significantly. Household spending had been subdued over recent months and demand for credit by both households and businesses had weakened," the minutes of the May meeting said. "Nevertheless, CPI and underlying

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