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:
- The global economy has improved a due to the rollout of vaccines.
- Australia’s economic recovery is stronger than expected.
- Unemployment has declined to 6.4% and retail spending is strong.
- GDP will grow by 3.5% for both 2021 and 2022.
- 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, giving mortgages a slight break on their loans.
More details a https://www.rba.gov.au/