RBA interest rate announcement and commentary - November 2023
The Reserve Bank of Australia (RBA) has decided to lift the the cash rate by 0.25% to 4.35%
In a statement on Tuesday the The RBA Governor, Michele Bullock stated that "Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago. The latest reading on CPI inflation indicates that while goods price inflation has eased further, the prices of many services are continuing to rise briskly."
The Board had held interest rates steady since June following an increase of 4% since May 2023. It had judged that higher interest rates were establishing a more sustainable balance between supply and demand in the economy. While the economy is experiencing a period of below-trend growth, it has been stronger than expected over the first half of the year.
Bullock said "Returning inflation to target within a reasonable timeframe remains the Board’s priority. High inflation makes life difficult for everyone and damages the functioning of the economy. Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks."
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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.