Reserve Bank of Australia February 2023 monetary policy decision.
The ninth in a row of cash rate hikes, cash rate to a 10-year high. The RBA says it expects further increases in the cash rate are yet to come.
Headlines via Reuters:
- Inflation is expected to decline this year due to both global factors and slower growth in domestic demand.
- Board expects further increases in interest rates
- Board resolute in its determination to return inflation to target
- The central forecast is for CPI inflation to decline to 4¾ per cent this year and to around 3 per cent by mid-2025.
- GDP growth expected to slow to around 1½ per cent over 2023 and 2024.
- Path to achieving a soft landing remains a narrow one
- The labour market remains very tight.
- Central forecast is for the unemployment rate to increase to 3¾ per cent by the end of this year and 4½ per cent by mid-2025.
- Wages growth is continuing to pick up from the low rates of recent years and a further pick-up is expected due to the tight labour market and higher inflation
- Some households have substantial savings buffers, but others are experiencing a painful squeeze on budgets
- Household balance sheets are also being affected by the decline in housing prices
- Uncertainties mean that there are a range of potential scenarios for the Australian economy
Full text is here:
Statement by Philip Lowe, Governor: Monetary Policy Decision
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Background to this:
(more previews of this decision at that post if you are after them)
