Laing+Simmons’ Post

 RBA not in a hurry to cut rates The cash rate will remain at 4.35% for all of 2024, after the Reserve Bank of Australia (RBA) board left it unchanged at its final monetary policy meeting of the year. While a rate cut would have stimulated the weak economy, it would also have risked reigniting inflation – and inflation is the RBA’s key concern. “Measures of underlying inflation are around 3.5%, which is still some way from the 2.5% midpoint of the inflation target,” the board said in a statement announcing its decision. “The most recent forecasts published in the November Statement on Monetary Policy do not see inflation returning sustainably to the midpoint of the target until 2026. The board is gaining some confidence that inflationary pressures are declining in line with these recent forecasts, but risks remain.” The board also emphasised that it was “resolute in its determination to return inflation to target” and would “do what is necessary to achieve that outcome” – even if that meant leaving rates higher for longer. #property #realestate #homeloans