Reserve Bank Holds Interest Rates Steady but Warns of Future Hikes
- The Reserve Bank of Australia decided to keep the official cash rate at 4.1% due to economic uncertainty and the impact of previous rate rises.
- The RBA has raised interest rates 12 times since May last year to curb high inflation, slowing consumer spending and weakening economic growth.
- The RBA will monitor economic data and inflation before determining if further rate increases are necessary to achieve its 2-3% inflation target.
- Mortgage holders get temporary relief, but fixed home loan rates will increase soon, and variable rates may rise again if inflation remains too high.
- The government and RBA aim to slow growth to a sustainable pace without causing a recession, but the outlook remains uncertain.