- Cash rate 4.35%
- Prior 4.35%
- While the impact of the Middle East conflict on inflation has so far been less than expected, headline inflation is still too high
- Short-term measures of inflation expectations have eased but remain higher than earlier in the year
- There continue to be heightened uncertainties about the outlook for domestic economic activity and inflation
- A period of prolonged uncertainty may also cause growth to be lower overseas and in Australia
- Focused on ensuring that high inflation does not become embedded
- Inflation not expected to return to around the midpoint of the target range until late 2027
- There are also upside risks to this projection
- Will continue to do what is necessary to bring inflation back to target, including increasing the cash rate target further if upside risks materialise
- Decision today was unanimous
- Full statement
Coming into the decision, traders were pricing in ~97% odds of no change for the meeting. More to come..
This article was written by Justin Low at investinglive.com.