The Reserve Bank has kept interest rates on hold for the first time this year after three consecutive rate rises as it aims to curb inflation.
On Tuesday, the RBA left the country’s official interest rate unchanged at 4.35 per cent in a decision that was widely expected.
Since February, the Reserve Bank’s three interest rate hikes have added nearly $300 in total to monthly repayments on an average mortgage of $600,000.
The bank’s latest decision, aimed at continuing to tackle inflation while ensuring unemployment does not rise too sharply, comes after the latest inflation data showed trimmed mean inflation – the Reserve Bank’s preferred gauge of price pressures – rose 3.4 per cent in April, continuing to climb faster than the bank’s target of 2 to 3 per cent.
The latest labour market figures, meanwhile, showed that unemployment jumped from 4.3 per cent in March to 4.5 per cent in April, hitting the highest rate since November 2021.
The decision means mortgage holders will see no immediate change to their monthly repayments.
Treasurer Jim Chalmers will address the media at 3pm.
The next RBA rates decision is scheduled for August.
More to come