Persistent inflation has prompted the Reserve Bank to leave the cash rate unchanged at 3.6 percent, following its Board meeting today.
In a statement following the unanimous decision, the Board said inflation had fallen substantially since the peak in 2022, as higher interest rates had been working to bring aggregate demand and potential supply closer towards balance.
“Both headline and trimmed mean inflation were within the 2–3 per cent range in the June quarter.
“Recent data, while partial and volatile, suggest that inflation in the September quarter may be higher than expected at the time of the August Statement on Monetary Policy.”
It stated “with signs that private demand is recovering, indications that inflation may be persistent in some areas and labour market conditions overall remaining stable, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting”.
