At its meeting on Tuesday last week, the Reserve Bank of Australia (RBA) board decided to leave the cash rate unchanged at 4.35 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.25 per cent. While inflation is falling, the central bank says it remains too high, and rates need to remain “sufficiently restrictive”. The RBA will hold its final meeting of the year in December, but economists expect rate cuts will not occur until the first half of 2025.
