Rates On Hold
The Reserve Bank of Australia has left the official cash rate on hold following its March monthly meeting.
The cash rate remains unchanged at 4.35%. In a statement the Board said inflation was continuing to moderate which showed that higher interest rates are working to ease further inflation.
The Board noted that during the past month wages growth had picked up a little further but appears to have peaked.
“While there are encouraging signs that inflation is moderating, the economic outlook remains uncertain,” it said.
The RBA said returning inflation to target within a reasonable timeframe remained its highest priority.
“While recent data indicate that inflation is easing, it remains high,” it said.
Following the announcement by the RBA independent economist Saul Eslake predicted interest rates won’t happen until February 2025.
Although Commonwealth Bank economists are predicting three 25 basis point cuts by the end of this year.
