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Australia unexpectedly holds policy rate as it awaits more inflation data

1. Australia's RBA held rates at 3.85% to assess inflation data. 2. Economists expected a cut to 3.6%, but RBA chose to wait. 3. Inflation was 2.1% in May, at a four-year low. 4. The S&P/ASX 200 index fell 0.24% after the announcement. 5. Australia's growth is slowing, missing expected economic expansion.

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FAQ

Why Neutral?

The Reserve Bank of Australia's decision is region-focused and may not directly impact U.S. markets.

How important is it?

While the RBA's decisions impact global markets, the direct correlation to the S&P 500 is minimal.

Why Short Term?

Immediate market reaction is visible, but long-term effects are limited and detached from U.S. economic policies.

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