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’s latest forecasts now assume no further rate rises will be needed for inflation to fall back to the central bank’s 2-3% target range by mid-2025.
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.
Small businesses can expect variable rates on SME loans to remain low and a more competitive labour market following the Reserve Bank's board meeting yesterday.
