Key Points
- The Reserve Bank has chosen to keep the cash rate target at 4.1 per cent.
- The RBA made 12 rate hikes across 13 monthly meetings between May 2022 and June 2023 to try to tackle inflation.
- It's the fourth consecutive month that the central bank has kept the rate unchanged.
The Reserve Bank of Australia (RBA) has kept the official cash rate at 4.1 per cent at its first meeting under the leadership of new governor .
It's the fourth consecutive month that the central bank has kept the rate unchanged.
"The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so," Bullock said in a statement after Tuesday's monthly meeting.
"In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month.
"This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook."
Bullock took over from previous governor Philip Lowe in September, after he announced in July that he was stepping down from the role.
A final hike before the end of the year remains on the table, after a worrying set of inflation numbers in the monthly consumer price index.
The headline number lifted 5.2 per cent annually in August, up from 4.9 per cent in July.
The RBA board has opted to keep monitoring the situation and wait patiently for the full set of quarterly inflation numbers due later in the month.
Twelve separate rate hikes were made from a historic low of 0.10 per cent over 13 meetings between May 2022 and June 2023.
The increases were made in an effort to curb rising inflation.
Source: SBS News
More than 30 per cent of mortgage holders, or 1.57 million, fell into this at-risk category over the three months to August.
