RBA Interest Rate Announcement

The RBA for March-2021 has decided leave rates unchanged. 

The tone of the announcement is clearly surprisingly positive.

There are 5 points to the announcement today:

  1. The global economy has improved a due to the rollout of vaccines.
  2. Australia’s economic recovery is stronger than expected.
  3. Unemployment has declined to 6.4% and retail spending is strong.
  4. GDP will grow by 3.5% for both 2021 and 2022.
  5. Inflation is still likely to be low at 1.25-1.50% pa for the next two years. The RBA noted they will not raise rates until inflation is within the 2-3% target range and expect this to be 2024 at the earliest.

More details a https://www.rba.gov.au/media-releases/2021/mr-21-03.html