RBA Leaves Cash Rate Target at 4.10%

The Reserve Bank of Australia (RBA) has decided to maintain the cash rate target at 4.1%, despite pressures for a rate hike due to labor market tightness and persistent inflation. The decision led to immediate market reactions, including a revaluation of the Aussie dollar. The RBA is keeping options open for future monetary policy adjustments, citing weak household consumption and dwelling investment. Economic projections include a GDP growth of 1.7% in 2024 and a jobless rate of 4.5% by late next year. The RBA remains committed to returning inflation to target levels, acknowledging increased wages growth. This decision reflects a pause to assess the impact of previous rate hikes.

What decision did the Reserve Bank of Australia make regarding the cash rate target?

• They eliminated it entirely

• They decreased it to 3.5%

• They kept it at 4.1%

• They increased it to 5.0%

What are the two primary factors that supported the case for a rate hike?

• Tight labor market and headline inflation

• Weak GDP growth and strong currency

• High unemployment and low inflation

• Rising house prices and strong exports

What is the RBA's stance on further monetary policy tightening?

• They are considering it but leaving options open

• They have already implemented it

• They are against any form of tightening

• They have ruled it out completely

What is the projected GDP growth for 2024 according to the RBA?

• 2.5%

• 3.0%

• 1.7%

• 4.0%

How has wages growth responded according to the RBA?

• It has picked up in response to the labor market

• It has remained stagnant

• It has been unaffected by the labor market

• It has decreased significantly