Reserve Bank of Australia (RBA) has announced a pause in the cash rate target for July 2023 after the board meeting held on 4th July 2023.
The cash rate target remains the same as last month. The cash rate target for July 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, 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.
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 7 per cent, it is still too high and it will be some time yet before it is back in the target range. Hence, it is important to return inflation to target within a reasonable timeframe.
Date revised: 04 July 2023