At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 4.10 per cent. It also increased the interest rate paid on Exchange Settlement balances by 25 basis points to 4.00 per cent.

• Inflation in Australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range.
• The unemployment rate increased slightly to 3.7 per cent in April and employment growth has moderated.
• The Board is still seeking to keep the economy on an even keel as inflation returns to the 2–3 per cent target range, but the path to achieving a soft landing remains a narrow one.

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 : 06 Jun 2023