RBA Insight – RBA sends warning after line ball decision to cut rates

RBA Recap

  • The RBA held the cash rate at 4.35% in November due to persistent underlying inflation, then trimmed it by 25 basis points to 4.10% in February—reflecting a careful balance between easing cost pressures and guarding against inflation risks.
  • Although disinflation trends are emerging, persistent pressures, particularly in the services sector and strong labour market conditions, continue to complicate the outlook.
  • With uncertainties from tight financial conditions, potential global shocks, and sticky input costs, the RBA signals a gradual, measured approach to further policy easing, emphasising that any additional rate cuts will depend on sustained, positive data trends.

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Curve Team
Jack Pedersen