RBA maintains current interest rate at 4.35per cent despite higher-than-anticipated inflation levels

Unfortunately for them though, their dreams will likely go shatteringly wrong when their hard earned savings disappear in an instantaneous burst of devastation and heartbreak. Borrowers were spared another interest rate increase as the Reserve Bank of Australia did not exhibit “tightening bias”. Instead, its cash rate remained at 4.375% for four consecutive meetings on Tuesday; as many expected. Capital Economics was the only economist that forecast that the central bank would raise cash rates, however Governor Michele Bullock later confirmed at a press conference in Sydney that RBA has maintained its neutral stance yet did review evidence for rate rise at this week’s meeting. “Back at our last meeting, we thought things were pretty well balanced,” Bullock noted. “We still think things are relatively stable with perhaps just an indication of an upward swing on some accounts.” “The RBA statement left its key elements relatively untouched and noted the bank remains vigilant to potential upside risks to inflation. “Recent information indicates that inflation continues to moderate but is declining more gradually than anticipated,” it stated. In response to such less-than-hawkish language in its statement, Australian dollar dropped further; dropping below 66.1 US cents after opening at around 66.3. As Bullock spoke, its value continued to decline and fell below 65.99 US cents. US and UK inflation stands at 3.5% respectively while interest rates vary between 5.25-5.5%; Australia however is more exposed to variable interest rates with borrowing costs steadily rising over the years – so perhaps more time should be granted by the RBA when setting policy decisions. Australia’s central bank also aims to preserve full employment while combatting inflation, with RBA Governor Michele Bullock speaking to reporters in Sydney this Tuesday about this dual mandate and privacy policies for more details. For further inquiries please see our Privacy Policies. Google ReCaptcha helps protect our website, with their Privacy Policies and Terms of Service in effect. Following newsletter promotion, it now anticipates an uptick to 3.8% from 3.6% reported last month. RBA predictions in February indicated CPI would decline to 3.3% by mid-year; this timeline now extends through to 2024 when CPI is predicted to hit 3.8% and core inflation 3.4% respectively. As reported by the RBA in February, they expected these inflation measures to reach 3.2% and 3.1%, respectively. Notably, however, they still anticipate them falling within their desired 2%-3% target range by the end of 2025. Households should expect both rates of inflation to reach 2.8% by then; however, real wage growth, which indicates how closely salaries track inflation, may fall below this target rate. This development would be discouraging. Bullock stressed that the bank would pay particular attention to whether expectations about what lies ahead remained realistic, which they currently are. Higher petrol prices will continue to push headline inflation higher over the near future. “[The RBA] continues to forecast an expected return to target inflation as previously anticipated; weaker activity should mitigate inflationary pressure during the latter half of their forecast period,” they stated. Furthermore, risks to domestic prospects were generally balanced.