The Reserve Bank of Australia (RBA) has left the cash rate on hold at 3.60 per cent following its December board meeting, citing recent signs of persistent inflation and a stronger-than-expected economic recovery.<\/p>\n
While inflation has fallen significantly since peaking in 2022, the RBA noted a recent uptick in underlying inflation. The central bank believes some of the rise may be temporary, but the data also point to a broader and potentially persistent pick-up in price pressures.<\/p>\n
\u201cPrivate demand is recovering,\u201d the Board said.<\/p>\n
\u201cLabour market conditions still appear a little tight but further modest easing is expected.\u201d<\/p>\n
Economic activity has continued to strengthen, driven by consumption and business investment, with the housing market also picking up. Financial conditions have eased overall, credit is accessible, and previous rate cuts are still flowing through the economy.<\/p>\n
Labour market data presents a mixed picture. While the unemployment rate has edged higher and employment growth slowed, measures of underutilisation remain low. Many businesses continue to report difficulty hiring staff, and wage pressures remain elevated despite a cooling in the Wage Price Index.<\/p>\n
The RBA highlighted ongoing uncertainties around the outlook, particularly whether inflationary pressures will persist and to what extent monetary policy remains restrictive. Private sector momentum has been stronger than expected and could fuel further inflation if sustained.<\/p>\n
Globally, uncertainty continues, but Australia\u2019s key trading partners have so far seen limited impact on growth and trade.<\/p>\n
In its decision, the Board judged it was prudent to remain cautious and monitor how the economy evolves.<\/p>\n
\u201cThe Board will be attentive to the data and the evolving assessment of the outlook and risks,\u201d the statement read.<\/p>\n
The RBA remains focused on its dual mandate of price stability and full employment, with a unanimous decision to hold the cash rate steady while keeping a close watch on global and domestic developments.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Reserve Bank of Australia (RBA) has left the cash rate on hold at 3.60 per cent following its December board meeting, citing recent signs of persistent inflation and a stronger-than-expected economic recovery. While inflation has fallen significantly since peaking in 2022, the RBA noted a recent uptick in underlying inflation. The central bank believes […]<\/p>\n