In great news for borrowers, the Reserve Bank of Australia this week left interest rates on hold for the second month in a row. Following Tuesday’s decision, the official cash rate will stay at 4.1%.
In his post-meeting statement, RBA governor Philip Lowe noted that the recent run of hikes has been effective in establishing a ‘more sustainable balance between supply and demand in the economy and will continue to do so’.
He did however, warn of possible further increases, saying “some further tightening of monetary policy 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”.
