THE Reserve Bank of Australia has extended its interest rates pause for a fourth consecutive month as it assesses whether the sharpest increase in borrowing costs in three decades has done enough to stem inflation.
In her first monetary policy meeting as governor, Michele Bullock and the bank board on Tuesday left rates at 4.1 percent, although they noted further rate rises might be needed to ensure inflation returns to its 2-3 percent target in a “reasonable” timeframe.
However, new data from the RBA released this week suggests that more Australians are using credit cards to cover the rising costs of rent, petrol, electricity, gas and insurance.
The RBA data revealed the National Debt Helpline is receiving more calls from people who have never previously experienced financial hardship or drawn on social services.
According to an official statement from Michele Bullock, some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will continue to depend upon the data and the evolving assessment of risks. In making its decisions, the Board will continue to pay close attention to developments in the global economy, trends in household spending, and the outlook for inflation and the labour market. The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome.
To read the full statement, visit: https://www.rba.gov.au/media-releases/2023/mr-23-25.html
