At today’s monetary policy meeting the Reserve Bank dropped the official cash rate to 3.85 per cent.
In a widely anticipated move, the RBA’s decision to cut the cash rate by 0.25 per cent brings it to a level last seen in May 2023.
In today’s press conference Reserve Bank Governor Michele Bullock said inflation is back under control, but US tariffs introduce a new set of challenges to the economy. She said the board remain alert to risks such as US trade policies leading to supply chain issues that could raise import prices.
Ms Bullock also addressed Australia’s housing affordability crisis, saying it is a demand and supply issue that cannot be fixed by the Reserve Bank. “Increasingly this issue has been finding its way into both state and federal governments and that is where the focus has to be,” she said.
“This has been brewing for many years, but we have to focus on our inflation and employment mandate, which is a really good thing we can do for young people and renters.”
The next RBA rate announcement is expected on the 8th July, 2025.
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