Earlier today the Reserve Bank of Australia announced its sixth consecutive decision to leave the cash rate unchanged at 4.35%.
While many were hoping for cuts to their mortgage interest rates, this decision was widely anticipated as inflation hasn’t fallen as quickly as the RBA had hoped. Today was a day of economic turmoil, as global stock markets plummeted and the ASX experienced its worst day session since 2020.
The RBA’s highest priority and focus remains on returning inflation to target within a reasonable timeframe. However, they concede that inflation is proving persistent and economic forecasts contain a high degree of uncertainty, making it difficult to decrease rates as quickly as they had hoped.
In a statement released today, the Board announced they will continue to pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.
Until inflation reaches the RBA’s target range, it seems the path interest rates take will remain unchanged.
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