Australia's Persistent Inflation Supports RBA's Tight Policy

Reported 28 days ago

Australia's core inflation remains high, prompting the Reserve Bank of Australia (RBA) to maintain a restrictive monetary policy. The trimmed mean consumer price index rose by 0.8% last quarter, aligning with forecasts. RBA Governor Michele Bullock predicts that consumer prices will not sustainably return to the target band of 2-3% for another year or two. With concern over rising consumer spending and economic conditions, the RBA is cautious and is not expected to lower interest rates until February 2025, despite recent signs of progress in employment and inflation.

Source: YAHOO

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