At its meeting today, the Board decided to leave the cash rate target unchanged at 3.60 per cent and the interest rate on Exchange Settlement balances unchanged at 3.50 per cent.

• This decision follows a cumulative increase in interest rates of 3½ percentage points since May last year. The Board recognises that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt.
• A range of information, including the monthly CPI indicator, suggests that inflation has peaked in Australia.
• The unemployment rate is at a near 50-year low and underemployment is also low.
• The Board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target.

The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.

To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.

Published : 04 Apr 2023