RBA

On September 5, local time, Reserve Bank of Australia (RBA) Governor Bullock said she sought to reduce inflation in a reasonable timeframe and support employment. The policy will remain restrictive until inflation returns to the target range in a sustainable manner. There will be no rate cuts in the near term, and inflation needs to slow in real numbers before taking action.

Minutes of the Reserve Bank of Australia's (RBA) August meeting indicated that while the possibility of further rate hikes was discussed, the decision to keep the key interest rate at 4.35% was deemed more justified. Given the uncertainty around future consumption and the outlook for the labour market, members assessed that the risk of inflation not returning to target within a reasonable timeframe had increased, so holding the cash rate steady for an extended period would be appropriate.

There has been further progress on inflation, but it has been very slow, said RBA Governor Bullock on August 16. The Board remains vigilant to upside risks to inflation. It is premature to be thinking about rate cuts.

As demand growth looks set to accelerate next year, the Board doesn't expect inflation to be back in the target range until the end of 2025. The Board will remain vigilant about upside risks to inflation and will not hesitate to raise interest rates when necessary.

The Reserve Bank of Australia (RBA) continued to leave interest rates unchanged at a 12-year high, waiting for sticky inflation to weaken. It also said that policy needs to be sufficiently restrictive until it is confident that inflation is moving consistently towards its target range while raising its expectations for core inflation and economic growth.