The Reserve Bank has left interest rates on hold in December, for a ninth-straight meeting, citing underlying inflation remaining too high.
The RBA kept its cash rate target at 4.35 per cent after a two-day meeting, a level it has been at since November 2023.
That is despite Australia’s economy recording its weakest annual growth rate in decades — outside of the pandemic — in the September quarter and inflation at a more-than-three-year low.
In its post-meeting statement, the RBA board said despite inflation falling from its peak in 2022, it wanted to see further easing.
“While headline inflation has declined substantially and will remain lower for a time, underlying inflation is more indicative of inflation momentum, and it remains too high,” the statement read.
“Recent data on inflation and economic conditions are still consistent with these forecasts, and the Board is gaining some confidence that inflation is moving sustainably towards target.”
The next chance borrowers have for a reprieve is in February.
RBA governor Michele Bullock will hold a press conference at 3:30pm AEDT.
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