RBA Update - February 2024

The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.35% at its first monetary policy meeting of the year.

The move was widely expected, as it follows new Australian Bureau of Statistics data showing annual inflation fell to a two-year low of 4.1% during the December quarter.

This is notably lower than the 4.5% the RBA predicted in November, suggesting the 13 rate rises since May 2022 have slowed down the economy faster than anticipated.

As a result, market commentators increasingly believe the RBA’s next cash rate move will be down. That said, nothing is ever guaranteed – and inflationary pressures remain in the economy.

With the interest rate picture looking uncertain, it can help to talk to an expert. Contact me if you'd like to discuss your situation and options.

Read the full statement here.