At its final meeting for 2021, the Reserve Bank of Australia decided this week to make no change to the official cash rate.
The official rate has been at .1% since November last year.
In his regular statement announcing the decision, Bank Governor Philip Lowe re-affirmed the Board’s position that it will not increase the cash rate ‘until actual inflation is sustainably within the 2 to 3% target range’.
“This will require the labour market to be tight enough to generate wages growth that is materially higher than it is currently”, Lowe said, adding that this is likely to take some time and the Board is prepared to be patient.
