The Reserve Bank of Australia (RBA) has left the cash rate at 4.35%, while stressing it is uncertain about the outlook for inflation and therefore future interest rate movements.
The RBA is trying to reduce inflation (currently 3.4%) to its target range of 2-3%, and expects to get succeed by 2025, but has voiced concerns about conflicting signals:
* On the one hand, some signals are pointing to lower inflation – the economy is slowing, price growth for goods is slowing and household consumption growth remains weak.
* On the other hand, some signals are pointing to higher inflation – there’s still too much demand in the economy, price growth for services remains elevated and household consumption might increase later in the year.
As a result, the RBA said it is “not ruling anything in or out” about whether the next move in the cash rate will be up or down, and when it will occur.
#property #realestate #homeloans
RBA leaves options open for cash rate
The Reserve Bank of Australia (RBA) has left the cash rate at 4.35%, while stressing it is uncertain about the outlook for inflation and therefore future interest rate movements.
The RBA is trying to reduce inflation (currently 3.4%) to its target range of 2-3%, and expects to get succeed by 2025, but has voiced concerns about conflicting signals:
* On the one hand, some signals are pointing to lower inflation – the economy is slowing, price growth for goods is slowing and household consumption growth remains weak.
* On the other hand, some signals are pointing to higher inflation – there’s still too much demand in the economy, price growth for services remains elevated and household consumption might increase later in the year.
As a result, the RBA said it is “not ruling anything in or out” about whether the next move in the cash rate will be up or down, and when it will occur.
#property #realestate #homeloans