The Reserve Bank decided to keep interest rates on hold at 4.1% because it thinks there’s a chance – just a chance – it has lifted them all it needs to.
The RBA’s latest forecasts now assume no further rate rises will be needed for inflation to fall back to the central bank’s 2-3% target range by mid-2025.
Chalmers offered in-principle agreement to all 51 of the panel’s recommendations and said he would be seeking support from the Opposition for any legislation needed to implement them.
The RBA has been relying on house prices falling to help reduce consumption and lower inflation. The bank has left itself the option to lift interest rates next time it meets, in early May.
