- Prior 3.85%
- Inflation has passed its peak but is still too high
- It will be some time yet before it is back in the target range
- Economic growth has slowed and labour market conditions have eased, although they remain very tight
- Wages growth has picked up in response to the tight labour market and high inflation
- RBA remains alert to the risk that expectations of ongoing high inflation contribute to larger increases in both prices and wages
- The path to achieving a soft landing remains a narrow one
- A significant source of uncertainty continues to be the outlook for household consumption
- Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe
- Full statement
That makes it back-to-back meetings now that the RBA has surprised markets or at least gone against the expected decision outcome. I outlined earlier how the risks are not really skewed to either side here. And the Australian dollar has benefited from this in a jump from around 0.6615 earlier to 0.6670 on the day. The 200-day moving average is the next key upside target to watch, sitting at 0.6690.
Looking at the details of the statement, the RBA continues to keep the focus on inflation pressures and made no change whatsoever to the final paragraph with regards to forward guidance.