At its meeting today, the Board decided to hold the cash rate target steady at 4.10 per cent. It also left the interest rate on Exchange Settlement balances unchanged at 4.00 per cent.

• The current higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so.
• Inflation in Australia has passed its peak and the monthly CPI indicator for May showed a further decline. But inflation is still too high and will remain so for some time yet.
• The Board remains alert to the risk that expectations of ongoing high inflation will contribute to larger increases in both prices and wages.
• 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 Jul 2023