China's property crisis takes on new significance for RBA
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Reporter's view: Economics correspondent Jennifer Duke says: "The deterioration in China’s property market and overall economy has taken on new significance for the RBA. The board’s full meeting minutes for August detail concerns about the Chinese economy and property market. However, September marks the first time the issue has been mentioned in the shorter statement published on the day of the interest rate decision.
"This statement typically focuses more on domestic concerns. Dr Lowe said in the statement: 'globally, there is increased uncertainty around the outlook for the Chinese economy due to ongoing stresses in the property market'."
RBA keeps rates on hold as Lowe eyes the exit
The news: The Reserve Bank has held the cash rate steady at 4.10% at Philip Lowe's last rates meeting as governor.
The numbers: The cash rate has been at 4.10% since June and has lifted by 4 percentage points since the RBA began hiking rates in April 2022. Quarterly CPI for the year to June was 6%, down from 7% in the March quarter and from a 30-year high of 7.8% last December. CPI data for the current quarter is due on October 25.
The context: Recent wages, employment, monthly CPI and retail sales data have been softer than forecast, giving the RBA little reason to hike rates further today. However, with inflation still looming well above the RBA's target range of 2%-3%, rates could be high for some time yet. Analysts are divided on whether further rate hikes lay ahead, but ahead of today's decision economists from three of Australia's big four banks believed the cash rate had already hit its peak. Michele Bullock will take the reins from Phillip Lowe on 18 September.
The source: RBA Media Release
