Economic reports from the Australian Bureau of Statistics

RBA Maintains Cash Rate at 13-Year High of 4.35%, Signals Confidence in Inflation Control

Dec 10, 2024, 03:31 AM

The Reserve Bank of Australia (RBA) has decided to maintain its cash rate target at 4.35%, marking the ninth consecutive meeting with no change. This decision comes amidst ongoing efforts to manage inflation, with the RBA expressing some confidence that inflation is moving towards its target, despite underlying inflation still being above the desired level. The central bank noted that recent economic data aligns with forecasts, suggesting that monetary policy is working as anticipated. However, the RBA also highlighted a high level of uncertainty regarding the global economic outlook. The Australian dollar weakened following the announcement, reflecting market reactions to the RBA's cautious approach to inflation risks. Homeowners are now looking towards 2025 for potential rate relief, as the RBA has not indicated any immediate plans for rate adjustments. The RBA's decision to hold rates at a 13-year high reflects its commitment to sustainably returning inflation to the target, even as it sees a decrease in inflationary pressures.