RBA holds rates steady at 4.35%
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The news: The Reserve Bank has left rates unchanged at its first board meeting of 2024.
The numbers: The RBA held the cash rate steady at 4.35%. It came after the latest inflation data showed the CPI fell to 4.1% for the 12 months to December 2023, a bigger decline than expected. The cash rate had stood at a historic low of 0.1% from November 2020 to May 2022 before the central bank hiked rates 13 times.
The context: Today will be the first time the RBA holds a fully-fledged press conference following an interest rate decision. Parliament is also sitting this week for the first time in 2024 and Bullock’s responses are likely to be put directly to Treasurer Jim Chalmers by the press gallery.
In a statement, the RBA board said while inflation continued to moderate, it was still high.
The central bank noted that it expected inflation to decline to the 2% to 3% target range in 2025 and to reach the midpoint in 2026.
What they said: "The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, and a further increase in interest rates cannot be ruled out," the announcement said.
The source: RBA Monetary Policy Decision Statement
