The Reserve Bank of Australia has held the official cash rate (OCR) steady at 4.35% during its September meeting, a move predicted by all 42 economists surveyed in Finder’s Reserve Bank of Australia Cash Rate Survey.
Australia’s central bank decided not to follow its US counterpart in cutting rates with inflation still above the 2-3% target band.
However, anticipation is building for a rate cut this side of Christmas as several key economic indicators point towards a struggling economy.
Reserve Bank governor Michele Bullock has long opined that Australia’s situation is different from other developed economies where interest rates have been falling for some months.
In a statement released with the cash rate decision, the board reiterated fighting inflation remains the main game, dismissing “temporarily” falling headline inflation as a result of federal and state cost of living relief measures.
