RESERVE BANK PAUSES RATES
* The money fee has risen from 0.1 per cent in April 2022 to three.6 per cent in March.
* The Reserve Bank board determined at its April assembly to depart the money fee on maintain.
* In a press release, the board stated the pause would “provide additional time to assess the impact of the increase in interest rates to date and the economic outlook”.
* The RBA believes inflation has peaked in Australia, with items costs inflation anticipated to average in coming months.
* The forecast is for inflation to say no this 12 months and subsequent, to round three per cent in mid-2025.
* The board says there may be proof that the mix of upper rates of interest, cost-of-living pressures and a decline in housing costs is resulting in a “substantial slowing in household spending”.
* The labour market stays very tight with the jobless fee at a close to 50-year low and wages progress is growing in response.
WHAT’S NEXT?
* The board “expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target”, however this may depend upon “developments in the global economy, trends in household spending and the outlook for inflation and the labour market”.
* Consumer teams have urged debtors to buy round for higher charges. The cumulative 3.5 per cent improve to the money fee over the previous 10 months added $1051 to month-to-month repayments on a $500,000 mortgage over 30 years, Canstar says.
* CPA Australia has urged companies to hunt skilled recommendation, saying: “We are facing an unpredictable environment and businesses should not assume rate rises are over.”
* Master Builders Australia says governments ought to again within the charges pause and produce inflation underneath management by utilizing their budgets to spice up business productiveness.
WHAT THE TREASURER SAYS
* “While today’s decision will come as a relief for a lot of Australians, we know people will continue to struggle. That’s why the costs of living are the primary focus of our economic plan and the upcoming budget.” – Treasurer Jim Chalmers.
Source: www.perthnow.com.au
