Reserve Bank of Australia (RBA) has announced no changes to the cash rate target for August 2023 after the board meeting held on 1st August 2023.
The cash rate target remains the same for the third consecutive month. The cash rate target for August 2023 sits at 4.10 per cent – still the highest cash rate target since 10 years ago. Due to the constant increases in interest rates this past 12 months and the growing uncertainty surrounding the economic outlook, the board has decided to not increase the cash rate target. This will allow the Board to assess the impacts of the increase in interest rates and the economic outlook.
The Reserve Bank of Australia’s Board’s priority remains to return inflation to target (2-3 per cent range). High inflation makes life difficult for people and damages the functioning of the economy. Hence, although inflation (consumer price index, CPI) in Australia has passed its peak and is currently at 6 per cent, it is still too high and it will be some time yet before it is back in the target range. Goods price inflation has eased, but the prices of many services are rising briskly. Rent inflation is also elevated. RBA is forecasting inflation to be back within the 2–3 per cent target range in late 2025.
Date revised: 01 August 2023