The Reserve Bank of Australia (RBA) announced the cash rate will remain unchanged at 4.35% after its monetary policy meeting today.
This marks more than a year since the last change, which was an increase of 25 basis points in November 2023.
In a recent speech, RBA governor Michele Bullock discussed the RBA’s decision-making. She said the central bank typically looks at trimmed mean inflation which “was still too high at 3.5% over the year to the September quarter”. As a result, the board felt the cash rate would need to remain higher for long to keep control of inflation.
“Monetary policy settings will nevertheless need to remain restrictive until the Reserve Bank Board is confident that inflation is on track to return sustainably within the target range and approach its midpoint of 2.5%,” she said.