Hampton Wealth Management

The cash rate will remain at 4.35% following the Reserve Bank of Australia’s (RBA) March monetary policy meeting.

The decision was largely expected, as the latest Australian Bureau of Statistics data showed annual trimmed mean inflation fell to 3.8% in January, down from 4.0% in December.

While higher interest rates appear to be having the desired effect on the economy, RBA governor Michele Bullock reiterated the RBA’s commitment to return the cash rate to within its target range of 2-3%.

The Reserve Bank of Australia (RBA) has left the cash rate at 4.10% for the fourth consecutive month, as many commentators had expected.

The RBA has said in the past few months that it may increase the cash rate in the future, many commentators believe that rates have now peaked.

Good news for home owners with the RBA’s decision to leave interest rates on hold!!

Statement by Philip Lowe, Governor: Monetary Policy Decision | Media Releases At its meeting today, the Board decided to leave the cash rate target unchanged at 4.10 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.00 per cent.

The Reserve Bank of Australia (RBA) has increased the cash rate at May’s monetary policy meeting, taking it from 3.60% to 3.85%.

The move comes despite the Australian Bureau of Statistics' quarterly consumer price index showing annual inflation slowed to 7.0% in the first three months of 2023 from 7.8% in the December quarter.

However, this is still well above the RBA’s 2-3% target, so the central bank believes more cash rate rises are necessary to slow the economy further.