At its board meeting today the RBA confirmed the official cash rate would remain at 0.10%.
This was no surprise given that at its last meeting the bank confirmed that to consider an increase it would need to see underlying inflation between 2% and 3% on a sustainable basis, full employment and materially higher wages growth.
Increases to the headline inflation rate, driven mainly by the rising cost of fuel and new housing, have however seen markets speculate that rates will rise before the RBA’s forecast date of 2024.
Whilst overall home loan interest rates are still close to historical lows, this speculation has seen many lenders increase their fixed rates.
The RBA’s stance on rate hikes continues to confirm it remains committed to maintaining highly supportive monetary conditions to achieve a return to full employment with wages growth of around 3% or more.
If you have any questions about this announcement or interest rates, please feel free to contact us.