Reported 8 months ago
The Reserve Bank of Australia stated that its monetary policy is restrictive and causing financial distress for households due to the current cash rate. Assistant Governor Christopher Kent mentioned that the high interest rates of 4.35% are leading to slower demand growth and lower inflation, with mortgage payments reaching 10% of disposable income. Despite a significant increase of 425 basis points since May 2022, the RBA has kept rates steady due to inflation well above the target band of 2-3%. The central bank remains cautious about further rate hikes and is closely monitoring inflation risks.
Source: YAHOO