The Reserve Bank left rates on hold for another month and maintained its anti-inflation stance at its latest meeting on Monday and Tuesday.
It was the seventh meeting in a row that the central bank has held rates steady, keeping the cash rate at 4.35%, while continuing to emphasise its commitment to fighting inflation. The Bank again warned that it is ruling nothing in or out regarding future interest rate movements.
There was no move to follow last week’s rate cut by the Federal Reserve, the two cuts from the European Central Bank, or the reduction across the Tasman by the Reserve Bank of New Zealand.
Nor was there any response to the easing measures from the People’s Bank of China earlier in the day in Beijing.
After data last week showed the Australian unemployment rate holding steady in August, with solid job creation, all eyes are now on the monthly inflation reading due on Wednesday.
In the post-meeting statement, Governor Michelle Bullock reiterated that it will take some time before inflation is sustainably within the target range of 2% to 3%.
“Data since then have reinforced the need to remain vigilant to upside risks to inflation, and the Board is not ruling anything in or out,” she stated.
“Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range.”
She added that the Board will continue to rely on data and the evolving assessment of risks to guide its decisions.
“In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.
“The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome,” the statement concluded.