April Fool’s Day didn’t see a repeat of the Reserve Bank’s interest rate cuts in February, as they announced that the official cash rate will remain unchanged at 4.10 per cent.
In a statement released today, the RBA cited uncertain outlooks and a commitment to returning inflation to target levels as the reasons behind their decision.
“There are notable uncertainties about the outlook for domestic economic activity and inflation. The central projection is for growth in household consumption to continue to increase as income growth rises. But there is a risk that any pick-up in consumption is slower than expected, resulting in continued subdued output growth and a sharper deterioration in the labour market than currently expected.
Sustainably returning inflation to target within a reasonable timeframe is the Board’s highest priority. This is consistent with the RBA’s mandate for price stability and full employment. To date, longer term inflation expectations have been consistent with the inflation target and it is important that this remain the case.”
The next RBA rate announcement is expected on the 20th May, 2025.
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