Cash rate remains unchanged
The Reserve Bank of Australia (RBA) recently announced its decision to maintain the cash rate at 3.85% during its latest monetary policy meeting. This decision reflects the board's intention to gather additional information to confirm that inflation continues to align with their target.
The current cash rate is 50 basis points lower than it was five months ago. The data during the March quarter showed headline inflation was positioned at the midpoint of the RBA's target range and trimmed mean inflation registered at 2.9%. The board highlighted that inflation has decreased significantly since its peak in 2022. They also emphasized that the series of interest rate hikes implemented over the past years has effectively helped bring aggregate demand and supply towards a closer balance.
The Reserve Bank of Australia’s next schedule meeting
Looking ahead, the next meeting is August 11th and 12th, where further monetary policy decisions will be discussed.