Reserve Bank Australia Holds the Cash rate at 4.35%

At its meeting today, the Board of the Reserve Bank of Australia decided to leave the cash rate target unchanged at 4.35 per cent, indicating stubbornness in the inflation to remain higher than the target forecast. In monetary policy, the board also decided to maintain the interest rate paid on Exchange Settlement balances at 4.25 percent, reflecting a cautious approach to financial conditions in the current economic environment.

What are the key points of today’s RBA Monetary Decision?

• Inflation remains above target and is proving persistent.

• The outlook remains highly uncertain.

• Returning inflation to target is the priority.

At its meeting today, the Reserve Bank of Australia Board decided to increase the cash rate target by 25 basis points to 3.85 per cent. It was expressed that inflation in Australia has passed its peak, but at 7 per cent is regarded to be too high, and it will take time to be back in the target range. Therefore, the Board decided a further increase in interest rates was warranted today

The Reserve Bank of Australia (RBA) met on the 8th of February 2023 to determine the Cash Rate for unsecured overnight loans for banks, which impacts the interest rates passed onto the mortgage home loans for Australians.