US EditionAustralia central bank makes changes to money market operations
- The Reserve Bank of Australia decided to hold its benchmark interest rate steady at 4.1% today, as widely anticipated, during its meeting on August 6, 2024, behind construction fences in Sydney.
- The RBA's decision comes amidst a backdrop of declining inflation, with the latest reading in February at 2.4%, within the bank's target range of 2-3%, and a federal election campaign where Prime Minister Anthony Albanese called a national election for May 3.
- Despite economists previously being skeptical of a rate cut, recent inflation figures and GDP growth of 1.3% have raised hopes for a reduction, though the RBA is considering the election campaign and aiming to maintain impartiality.
- RBA Governor Michele Bullock stated, "we cannot declare victory on inflation just yet," emphasizing the need for sustained inflation within the target range and highlighting the increased international uncertainty due to recent US tariff announcements, while also describing the board's current level of rates as restrictive.
- The RBA remains cautious about future cuts, with Bullock noting that the board had never mentioned the election in its discussions and emphasizing that there has not been enough new economic data to materially change its view on inflation, while assessing the potential impact of tariffs on trading partners like China, possibly leading to a weaker global economy and lower prices.
40 Articles
40 Articles
RBA leaves rates on hold in April so when will they be cut?
SBS Finance Editor Ricardo Gonçalves speaks with Moody's Analytics Economist Katrina Ell about why the RBA left interest rates on hold, the impact on the election and where to next, while Jamie Hannah from VanEck takes a look at the sharemarket reaction.
RBA Holds Interest Rates Steady Ahead of Federal Election
In its final monetary policy meeting before the federal election, the Reserve Bank of Australia (RBA) has kept interest rates unchanged, despite government hopes for a further cut. The Board cited global uncertainties and the need for confidence in inflation returning to its target range before adjusting policy. “The Board needs to be confident that this progress will continue so that inflation returns to the midpoint of the target band on a sus…
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