RBA maintains its cash rate at 4.35% as expected; says some upside risks to inflation appear to have eased; Board is gaining some confidence that inflation is moving sustainably towards target

• Recent data on inflation and economic conditions are still consistent with these forecasts, and the Board is gaining some confidence that inflation is moving sustainably towards target.


• Underlying inflation remains too high.


• The outlook remains uncertain.


• Board is gaining some confidence that inflationary pressures are declining in line with recent forecasts, but risks remain.


• Board will continue to rely upon the data and the evolving assessment of risks to guide its decisions.


• While underlying inflation is still high, other recent data on economic activity have been mixed, but on balance softer than expected in November.


• There remains a high level of uncertainty about the outlook abroad.


• Wage pressures have eased more than expected in the November SMP.


• Taking account of recent data, the board’s assessment is that monetary policy remains restrictive and is working as anticipated.

Reaction details (03:36)

• Modest downticks seen in AUD/USD following dovish-leaning language from the Board, with AUD/USD dipping from 0.6412 to 0.6376 before trimming losses.

10 Dec 2024 - 03:30- Fixed IncomeImportant- Source: RBA