Australia's central bank expectedly held benchmark policy rates at 3.6% on Tuesday as inflation in the country stays at its highest level in more than a year.

The move was in line with expectations from economists polled by Reuters, and comes after the country earlier this month reported headline inflation rate of 3% for August — the highest since July 2024 — with housing, food and alcohol driving price growth.

The Reserve Bank of Australia signaled inflation worries in its statement Tuesday: "Recent data, while partial and volatile, suggest that inflation in the September quarter may be higher than expected at the time of the August Statement on Monetary Policy."

The bank said that private demand was recovering, and there were indicators that inflation might be persistent in some are

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