RBA interest rate announcement and commentary - July 2023
The Reserve Bank of Australia (RBA) has decided to leave the cash rate target unchanged at 4.1%
In a statement the The RBA Governor, Phillip Lowe stated that "Interest rates have been increased by 4 percentage points since May last year. 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. In light of this and the uncertainty surrounding the economic outlook, the board decided to hold interest rates steady this month. This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook."
Australian inflation has passed its peak but inflation is still too high. High inflation makes it difficult for everyone by eroding the value of savings, hurting household budgets and worsening income inequality. The board's priority therefore is to return inflation to its target within a reasonable timeframe.
The board has indicated that further tightening may be required to achieve it's inflation target however this will depend on how the economy and inflation evolve over time.
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General advice warning
The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
