Reserve Bank of Australia February 2023 monetary policy decision.

The ninth in a row of cash rate hikes, cash rate to a 10-year high. The RBA says it expects further increases in the cash rate are yet to come.

Headlines via Reuters:

  • Inflation is expected to decline this year due to both global factors and slower growth in domestic demand.
  • Board expects further increases in interest rates
  • Board resolute in its determination to return inflation to target
  • The central forecast is for CPI inflation to decline to 4¾ per cent this year and to around 3 per cent by mid-2025.
  • GDP growth expected to slow to around 1½ per cent over 2023 and 2024.
  • Path to achieving a soft landing remains a narrow one
  • The labour market remains very tight.
  • Central forecast is for the unemployment rate to increase to 3¾ per cent by the end of this year and 4½ per cent by mid-2025.
  • Wages growth is continuing to pick up from the low rates of recent years and a further pick-up is expected due to the tight labour market and higher inflation
  • Some households have substantial savings buffers, but others are experiencing a painful squeeze on budgets
  • Household balance sheets are also being affected by the decline in housing prices
  • Uncertainties mean that there are a range of potential scenarios for the Australian economy

Full text is here:

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Background to this:

(more previews of this decision at that post if you are after them)

Reserve Bank of Australia December 2020 decision