MNI BRIEF: RBA Board Leaves Cash Rate At 4.35%
MNI (SYDNEY) - The Reserve Bank of Australia Board decided to leave the cash rate at 4.35% following the conclusion of its two day meeting on Tuesday.
In its statement following the call, the board stressed recent data had presented a number of uncertainties, pointing to productivity metrics, savings ratios and the tight labour market alongside concerns on slowing growth. (See MNI POLICY: Competing Data Behind Recent Close RBA Calls)
“The central projection is for household consumption growth to pick up in the second half of the year as the headwinds to income growth recede – but there is a risk that this pickup is slower than expected, resulting in continued subdued output growth and a sharper deterioration in the labour market,” the Board said.
Uncertainties on the effect of monetary policy on firms’ pricing decisions and how wages will respond to slower growth at a time of excess demand were also concerning, the board noted.
The decision was largely anticipated. The RBA has held the cash rate steady since November 2023.
Governor Michele Bullock will address the media at 1530 AEST.