04/07/2023
The Reserve Bank of Australia (RBA) kept the cash rate at 4.10% at its July monetary policy meeting.
The decision was largely expected by market commentators, as it comes shortly after the Australian Bureau of Statistics released data showing annual inflation fell to 5.6% in May from 6.8% in April.
This suggests the central bank’s 12 previous cash rate increases are having the intended effect.
However, inflation still remains significantly higher than the RBA’s 2-3% target range so more cash rate rises may still be necessary to slow the economy further.
