What if the Reserve Bank achieves something truly remarkable – a steady decline in inflation without further interest rate increases, and without bringing on a recession?
The Reserve Bank decided to keep interest rates on hold at 4.1% because it thinks there’s a chance – just a chance – it has lifted them all it needs to.
The RBA has been relying on house prices falling to help reduce consumption and lower inflation. The bank has left itself the option to lift interest rates next time it meets, in early May.