RBA Cash Rate Call June 2023

In response to continuing high inflation, the Reserve Bank of Australia (RBA) has lifted official interest rates for the second month in a row and for the 12th time since May last year.

In response to continuing high inflation, the Reserve Bank of Australia (RBA) has lifted official interest rates for the second month in a row and for the 12th time since May last year.

The central bank at its June Board meeting increased its cash rate 25 basis points to 4.10%, the first time it has been above 4 per cent since April 2012.

RBA Governor, Dr Philip Lowe, said while the inflation rate in Australia had passed its peak,

“at 7% (it) is still too high”. Dr Lowe said it will be some time before the inflation rate is back in the RBA’s target range of 2-3%.

Dr Lowe said:

“This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe… Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve. The Board will continue to pay close attention to developments in the global economy, trends in household spending, and the outlook for inflation and the labour market.”

Following the RBA announcement, the banks usually announce their interest rate hike. If you’d like to have a chat and make a plan in how to optimise your lending and any current or future debt, please get in touch with us today

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