In a surprising turn in the financial landscape, the Reserve Bank of Australia (RBA) has held the interest rates unchanged at 4.35%. The central bank’s move follows the recent crypto market turmoil driven by the stock market crash.

Last day, the crypto market experienced its worst crisis in many months, with top cryptocurrencies declining to multi-month lows. Bitcoin dipped to the $50k level, while Ether, Solana, XRP, and other major tokens also showed drastic declines of more than 10% in just one day. Notably, the unexpected crypto market fall was triggered by the severe crash of the Japanese and US stock markets.

Apart from the crypto market crash worldwide, Australia has been struggling with the increase in the inflation rate. According to the Australian Bureau of Statistics, the consumer price index surged to 3.8% in the June quarter, which aligned with the economists’ forecast.

However, the RBA has decided to stay vigilant before taking further steps to confront rising inflation and worsening market turmoil. Thus, the bank announced unchanged interest rates that would stay the same until the RBA Board’s next meeting in six weeks. The Board stated, “Financial markets have been volatile of late, and the Australian dollar has depreciated.”

In the latest meeting, the US Federal Reserve held its interest rates stable at the two-decade high of 5.25%-5.50%. However, following the recent crypto market downturn, analysts anticipate an immediate interest rate reduction by the Fed to fight the recession.

Despite the recent downturn, the crypto market is currently on a healing stage where the tokens have managed to escape the severe lows. As of press time, Bitcoin is trading at $55,952, marking a massive hike of 11% over the last 24 hours. Meanwhile, ETH, SOL, and XRP have also surged by 16%, 22%, and 15%, respectively, over the same period. Analysts remain keen to watch the potential impacts of the RBA’s interest rate policy and the Fed’s decision.