RBA holds interest rates in December 2023

The Royal Bank of Australia met on Tuesday 5 December, announcing a hold on the cash rate at 4.35% for the remainder of 2023. 

Governor, Michelle Bullock said "This decision reflected the Board’s view that progress in bringing inflation back to the target range of 2 to 3 per cent was looking slower than earlier forecast. While the economy has been experiencing a period of below-trend growth, it was stronger than expected over the first half of the year. Underlying inflation was higher than expected at the time of the August forecasts, including across a broad range of services. Conditions in the labour market had eased but remained tight. Housing prices were continuing to rise across the country as was the number of new mortgages. Given this, the Board judged that the risk of inflation remaining higher for longer had risen and an increase in interest rates was therefore warranted to be more assured that inflation would return to target in a reasonable timeframe."

The RBA will meet again in February 2024, next year meetings are planned to shift to an extended two-day discussion followed by a press conference to explain the logic behind interest rate movements and the state of the economy.