The Reserve Bank (RBA) has kept interest rates on hold at 4.35% today for the third month in a row.
Governor Michelle Bullock has warned that while “inflation is moderating, the economic outlook remains uncertain” and reiterated that returning inflation to its target quickly is the Board’s main priority.
The RBA Board noted that while wage growth is moderating, it remains very high.
Similarly, services inflation is also running a higher than desired. Therefore, the Board were reticent to give indications on when they expect interest rates to be cut.
Nevertheless, they remain confident inflation will return to its target range of 2 – 3% in a reasonable timeframe.
More on the state of the economy will be known with the release of unemployment figures on Thursday.
