The Reserve Bank of Australia (RBA) has left interest rates on hold at 4.1 per cent, but has warned that more hikes will be needed to contain inflation.
RBA Governor Philip Lowe cited falling inflation and lagging productivity as large drivers of this month’s decision to hold the cash rate steady, as well as a preference to see more economic data before changing the base rate.
This is just the second meeting since May 2022 in which the RBA has decided to keep interest rates on hold.
In his monetary statement, Lowe said it was likely that more hikes would be needed to bring inflation down to the target band of under 3 per cent.
“Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve,” …