In its last monetary policy decision of the year, the Reserve Bank of Australia (RBA) left the cash rate on hold at today’s board meeting.
The decision comes as new data from the Australian Bureau of Statistics showed annual inflation eased sharply from 5.6% to 4.9% in October as higher interest rates worked to cool the economy.
But while inflation is significantly down from the peak of 8.4% in December 2022, RBA governor Michele Bullock recently warned that “homegrown” inflation was proving more persistent than expected.
As such, many believe we’re not out of the woods just yet.