At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.25 per cent.

• In Australia, CPI inflation over the year to the December quarter was 7.8 per cent, the highest since 1990.
• Inflation is expected to decline this year due to both global factors and slower growth in domestic demand.
• Wages growth is continuing to pick up from the low rates of recent years and a further pick-up is expected due to the tight labour market and higher inflation.
• The Board’s priority is to return inflation to target. High inflation makes life difficult for people and damages the functioning of the economy.

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 : 07 Feb 2023