Reserve Bank of Australia holds interest rates steady at 4.10%
05 Sep 23 2 min read
Insights
- The RBA has chosen to keep the cash rate at 4.10 per cent and the interest on Exchange Settlement balances at 4 per cent.
- The decision aims to balance supply and demand while grappling with inflation and sluggish growth in the Australian economy.
- Despite a tight labour market, unemployment is expected to increase to around 4.5 per cent by late next year.
The decision comes amid concerns over inflation and a period of below-trend growth in the Australian economy. Inflation is expected to decline to the 2–3 per cent target range by late 2025. However, the prices for many services and rent continue to rise, putting a strain on household budgets, governor Philip Lowe said in a statement.
The labour market remains tight, even as economic growth and employment are expected to grow below trend. This has led to a forecast of a gradual rise in the unemployment rate to around 4½ per cent by late next year.
The Board remains committed to reducing high inflation, which is seen as damaging to the economy and households. Medium-term inflation expectations remain consistent with the inflation target.
- BOJ to cut Japan govt bond buying based on market participants’ views
- Growth in Europe, Central Asia to fall to 3% in 2024: World Bank
- ADB, LPBank sign $80 mn loan to boost women-owned SMEs in Vietnam
- Germany’s wholesale prices 0.7% lower YoY in May 2024: Destatis
- US biz investment beating expectations in post-COVID expansion: Govt
- IMF revises Philippines' FY24 GDP growth projection to 6%
The meeting also noted uncertainties such as persistent service price inflation overseas and the lagging effects of monetary policy. Future monetary tightening may be necessary, depending on evolving data and risks. The Board pledges to closely monitor global economic developments, household spending, and inflation and labour market trends to make informed decisions.
Fibre2Fashion News Desk (KD)
Popular News
|
Net sales of US retailer Tilly’s at $115.9 mn in Q1 FY24 |
|
ICE cotton hits 2-year lows, traders waiting to buy at low prices |
|
22% YoY rise in Cambodia’s textile-garment exports in Jan-May 2024 |
|
Bangladesh’s RMG exports up 2.86% to $43.85 bn in July-May 2024 |
|
US biz investment beating expectations in post-COVID expansion: Govt |
|
New York State Senate passes Retail Worker Safety Act |