The RBA raised its cash rate by 25 basis points to 4.85% in a six-to-three vote. It now expects inflation to reach the top of its 2–3% target range only in late 2027, around three quarters later than previously forecast. Broader price pressures justified further tightening, the Board said, even as the economy slows, housing prices fall and unemployment rises.
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The RBA says the higher inflation outlook and continuing upside risks warrant further tightening.
The RBA raised the cash rate target by 25 basis points to 4.85%; six members voted for the increase and three preferred 4.60%.
Reserve Bank of AustraliaThe RBA expects inflation to reach the top of the 2–3% target range in late 2027, around three quarters later than previously forecast.
Reserve Bank of AustraliaThe RBA says the economy is slowing, housing prices have fallen significantly and unemployment has risen.
Reserve Bank of AustraliaLimitation: Tightening comes as the economy slows, housing prices fall and unemployment rises.
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