The RBA today has decided to increase the cash rate again by 0.25%. The cash rate is now 3.60%.
Nothing really new this month except the comment that the monthly inflation print notes that inflation has peaked. The other points are largely unchanged from the previous month.
There are 4 main points to the announcement today:
- The monthly CPI indicator suggests inflation in Australia has peaked. Rents are increasing at the fastest rate in years.
- The Australian economy has slowed to 0.5% in the December quarter and 2.7% for the year.
- Unemployment rate still close to a 50-year low but with slower economic growth, the RBA expects unemployment to increase.
- The RBA notes that it is in a difficult position to get inflation back to the acceptable range without hurting the economy too much and monetary policy operates with a lag.
More details at https://www.rba.gov.au/media-releases/2023/mr-23-07.html