The Reserve Bank of Australia (RBA) has left the cash rate on hold at its first monetary policy meeting of the year.
The move comes as no surprise, as the RBA has repeatedly said it won’t increase the cash rate until underlying inflation is sustainably within the 2–3% target range. The central bank does not expect this to happen until 2024, as the labour market needs to be tighter and wages growth materially higher than they are at present.
However, many commentators predict rising inflation and a rapidly improving economy will force the RBA to move sooner.
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