RBA on hold in August

The RBA left the cash rate on hold at 4.10% in August, the second consecutive on hold decision. The material lift in interest rates so far, lags in the transmission of monetary policy and uncertainty around the economic outlook drove the on hold decision. There are also growing signs inflation is coming down and consumer demand is moderating. We now expect the RBA to pause for an extended period at 4.10% before an easing cycle commences in Q1 24.

 

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