𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗗𝗿𝗼𝗽𝘀 𝗳𝗿𝗼𝗺 𝟲.𝟴% 𝘁𝗼 𝟱.𝟲%
Inflation has fallen significantly – and the timing couldn’t be better given that the Reserve Bank of Australia’s (RBA) next cash rate decision is just around the corner.
Annual inflation was 5.6% in May, according to the latest Australian Bureau of Statistics data, compared to 6.8% in April and 8.4% in December (the recent peak).
The RBA is fighting to reduce inflation to its target range of 2-3%. To do that, it’s been pushing up interest rates, in an attempt to cool the economy. When the RBA raised the cash rate at its monetary policy meeting earlier this month, it said that “further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe”. However, if the RBA now believes, based on this latest data, that inflation will continue falling of its own accord, it may no longer feel the need to keep raising rates.
The next monetary policy meeting will be held on Tuesday July 4.
Subiaco finance brokers are here to help
Interest rate rises are here, but you don’t have to fear with the right broker on your side.
The team at Sonam Capital are here to empower you through financial knowledge. We’ll take the time to get to know you and your unique situation and speak in a language you can understand, with strategies you can implement for the best possible outcomes.
Nick, Wayne and Amanda at Sonam Capital are your Subiaco finance specialists.
