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Australia Interest Rate 2022-2023 Forecast


Australia Interest Rate

1990-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Reserve Bank of Australia left its cash rate unchanged at a record low of 0.1% during its May meeting, as widely expected. Policymakers reaffirmed their commitment to maintaining highly supportive monetary conditions until at least 2024 when actual inflation is within the 2 to 3% target. The board also remained committed to the 3-year government bond yield target of 10 bps. At its July meeting, it will consider whether to retain the April 2024 bond as the target bond or to shift to the next maturity. Meantime, a pick-up in inflation and wage growth is expected, but it is likely to be only gradual. CPI inflation is projected to rise temporarily to be above 3% in Q2, on a reversal of some COVID-19-related price reductions. Regarding the GDP, the RBA's scenario has been revised up further, with the growth of 4¾% expected in 2021 and 3½% in 2022, as business investment picked up and household spending strengthened. source: Reserve Bank of Australia