06/02/2024
The RBA has met for the first time in 2024. As expected, the official cash rate was held at 4.35% for February.
Other key takeaways from the February board meeting:
📉Inflation has continued to drop, currently sitting at 4.1%, with the ideal target being between 2-3%. This target range is forecasted to be achieved in 2025.
👨🌾 The job market remains tight, but is cooling a bit.
📈 The RBA is not ruling out the possibility of increasing interest rates again.
🗺️ Inflation is falling rapidly in major overseas economies, and central banks in the USA, UK and Europe are likely to consider interest rate cuts over the next few months.
💰Stage 3 tax cuts won’t impact RBA forecasts as they don’t consider this a material issue for inflation.
