01/02/2022
🔥 Today's RBA rate decision and Economy update:
Key points:
✔ Australia's interest rates remain on hold at the historic low level of 0.10 percent despite soaring inflation figures and the rising cost of living.
✔ The Omicron outbreak has affected the economy, but it has not derailed the economic recovery.
✔ The labor market has recovered strongly, with the unemployment rate declining to 4.2 percent in December.
✔ The Reserve Bank will end its $350 billion bond-buying program on February 10, amid much better-than-expected economic data and rising inflation.
✔ The end of bond-buying does not signal an imminent rise in the cash rate.
✔ Housing prices have risen strongly, although the rate of increase has eased in some cities. With interest rates at historically low levels, it is important that lending standards are maintained and that borrowers have adequate buffers.
✔ As the Board has stated previously, it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. While inflation has picked up, it is too early to conclude that it is sustainably within the target band.
✔ Wages growth also remains modest and it is likely to be some time yet before aggregate wages growth is at a rate consistent with inflation being sustainably at target.
credit: ABC news
