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RBA Announcement 18.06.2024
At its most recent meeting, the Reserve Bank of Australia (RBA) decided to maintain the cash rate at 4.35 percent.
Read the official statement released today on the RBA’s website. The board will reconvene on August 5-6.
While inflation is easing, it is declining more slowly than previously anticipated, according to the RBA.
“The central forecasts, assuming the cash rate aligns with market expectations, predict inflation will return to the target range of 2–3 percent in the latter half of 2025, reaching the midpoint in 2026,” the RBA stated recently.
“In the short term, inflation is expected to be higher due to the recent increase in domestic petrol prices and higher-than-anticipated services price inflation, which is now expected to decline more gradually over the rest of the year.
“However, inflation is projected to decrease over 2025 and 2026.”
While the central banks of Canada and Europe have recently cut their cash rates, many economists believe that Australia is still months away from doing the same.
RBA Deputy Governor Andrew Hauser asserted that Australia’s central bank would not be influenced by the rate cuts in Canada and Europe.
RBA Governor Michele Bullock also reminded Australians that an interest rate cut would not bring relief unless inflation is under control.
"If it appears we are on track to meet our target, we will lift the restrictive nature of monetary policy. That's our plan," she said.
"But I want to emphasize that the precondition for this is that inflation must be coming down and staying within the board's timetable, because if it isn't, we cannot ease the restrictiveness of monetary policy.
"It wouldn't benefit people now because inflation is currently affecting everyone.”
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Contact us today, and we’ll evaluate whether refinancing to a more competitive interest rate could be worthwhile for you.
