MNI BRIEF: RBA Holds At 4.10%, Inflation Passed Peak
The Reserve Bank of Australia board left its official cash rate at 4.1% today, its third consecutive pause, noting Australia’s inflation has passed its peak.
The move was largely anticipated by the market and economists (See MNI RBA WATCH: Board Set For Pause As CPI Slows) and follows last week’s lower than expected monthly CPI print, which saw headline inflation fall to 4.9% (See MNI BRIEF: Aussie Monthly CPI Falls To 4.9%).
Governor Philip Lowe noted in a statement that, while some goods prices had decreased, services inflation remained too high. “Rent inflation is also elevated. The central forecast is for CPI inflation to continue to decline and to be back within the 2-3% target range in late 2025.”
He added some further tightening of monetary policy "may be required to ensure that inflation returns to target in a reasonable timeframe, but that will continue to depend upon the data and the evolving assessment of risks”.
The Governor will provide further insight when he delivers a speech at the Anika Foundation in Sydney on Sept 7.