At its meeting this morning, Tuesday, December 9, the RBA Board decided to maintain the cash rate at 3.60%, as expected, for the third consecutive meeting, following three rate cuts this year in February, May, and August.

In its policy statement, the RBA noted that inflation has declined significantly since its peak in 2022. The Board believes that the recent rise in core inflation is due to temporary factors, some of which may persist and require close monitoring.

Various indicators suggest that labor market conditions remain somewhat challenging, with the unemployment rate rising gradually throughout the year and employment and wage growth slowing.

There are uncertainties surrounding the outlook for domestic economic activity and inflation, and the likelihood of continued monetary policy tightening. Uncertainty in the global economy, coupled with recent data suggesting increased inflation risks, makes it appropriate to exercise caution and update the outlook as data evolves. The Board will remain focused on its mandate of achieving price stability and full employment and will take whatever measures are necessary to achieve this.