๐๐ผ๐ผ๐ฑ ๐ก๐ฒ๐๐ ๐ณ๐ผ๐ฟ ๐๐ผ๐บ๐ฒ ๐๐ผ๐ฎ๐ป ๐๐ผ๐ฟ๐ฟ๐ผ๐๐ฒ๐ฟ๐
For the second consecutive month, the Reserve Bank of Australia (RBA) has left the cash rate at 4.10%.
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That begs the question โ have interest rates peaked or will the RBA board make further rate rises in the coming months?
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The answer depends on inflation.
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The reason the RBA board has been raising interest rates has been to cool the economy, and thereby reduce inflation (currently 6%) to its target range (2-3%). Inflation has been trending down since December 2022 and is forecast to fall to the target range by the end of 2025. But the board may feel more rate hikes are needed to make sure of the job or accelerate the process.
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"Returning inflation to target within a reasonable timeframe remains the boardโs priority," the RBA said in a statement announcing the cash rate decision.
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"Some further tightening of monetary policy [i.e. rate rises] may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon the data and the evolving assessment of risks."
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Interest rate rises are here, but you donโt have to fear with the right broker on your side.
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