The Reserve Bank of Australia (RBA) has decided to hold the official interest rates steady at 4.35 per cent, a move welcomed amidst global financial turbulence. The last adjustment was made in November last year.
Treasurer Jim Chalmers addressed the media following the RBA’s announcement. He highlighted the decision’s importance in the face of persistent inflation and substantial uncertainty regarding the economic outlook. The RBA noted that inflation remains a challenge but recognised the progress made in recent months.
Chalmers acknowledged the economic difficulties faced by Australians, emphasising that the decision to hold rates provides some relief to mortgage holders and small businesses already under pressure. He pointed out that global market volatility, driven by weaker-than-expected jobs growth and tech earnings in the US, as well as rising interest rates in Japan, has had an impact on the Australian dollar and local share markets.
The Treasurer stressed the importance of responsible economic management, especially given the current global economic conditions. He noted that the annual trimmed mean inflation has moderated for six consecutive quarters, and while headline inflation is more persistent, it is now less than half its peak and significantly lower than the 6.1 per cent inherited at the last election.
Chalmers assured that the government’s cost-of-living measures are expected to reduce headline inflation to below 3 per cent in the next year. He also mentioned that the Albanese Labor Government is rolling out substantial cost-of-living relief, which has already taken half a percentage point off inflation, according to recent ABS data.
The Treasurer highlighted the delivery of the first back-to-back surpluses in almost two decades, which the RBA Governor acknowledged as aiding the fight against inflation. He reiterated that the government’s economic plan focuses on fighting inflation and easing cost-of-living pressures without adversely affecting the economy.
The RBA’s decision is seen as a reflection of the current economic softness and the progress made in controlling inflation. The government continues to implement responsible budget strategies, including tax cuts and energy rebates, to ease pressure on Australians.
Today’s decision by the RBA, in the context of a volatile global economic environment, underscores the importance of vigilance and proactive economic management. The focus remains on achieving a soft landing for the economy while providing necessary relief to those most affected by current economic challenges.
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The @RBAInfo 🏦 holds interest rates at 4.35%, providing relief amidst global financial turbulence. Treasurer @JEChalmers highlights #inflation challenges & govt efforts to ease cost-of-living pressures through economic management. 📉💰🇦🇺 #TheIndianSunhttps://t.co/4GtegmTB63
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