Today’s meeting of the Reserve Bank of Australia will focus on whether or not to raise interest rates for the eleventh time in a row.
The opinions of economists on whether the RBA will hold rates steady or increase them by another 0.25 percent to 3.85 percent are largely divided.
The additional monthly payment of $77 would bring the monthly payment for someone with a $500,000 mortgage close to $1,000.
When the RBA raised interest rates at 10 consecutive sessions, the cash rate objective of 3.6% is at its highest level since May 2012.
While economists at the ANZ and NAB banks predict a rise, those at St. George predict a stop.
RBA Governor Philip Lowe characterised the bank’s decision to keep raising rates as being primarily motivated by the persistent inflation, which is currently above 7%.
The RBA has often stated that it wants to get inflation back to 2% to 3%.
The economy appears to be slowing down and the prospect of growing inflation is lessening, according to the most recent data on retail commerce and inflation.
Australia’s inflation rate increased 6.8% in the year to February 2023, which is a minor decrease from the 7.4% annual increase noted in January.
Yet remarks made by Lowe at a business event have raised expectations that the RBA will maintain interest rates at its April board meeting today.
We are nearing the time when it will be appropriate to pause interest rate increases to give more time to evaluate the state of the economy, Lowe said at the Australian Financial Review’s Business Summit last month. “Monetary policy is now in restrictive territory.
The US and European banking markets’ disruption on a global scale has given Australian interest rate increases more momentum.
Some of the most disadvantaged citizens of the country would be impacted by continued hikes, the Australian Council of Social Service said.
Another rate increase, according to CEO Cassandra Goldie, will only exacerbate the cost-of-living constraints already present and drive many people into poverty and unemployment.
In one of the richest countries in the world, millions of people are currently required to face horrifying decisions about which to choose: food or medicine.
Individuals receiving JobSeeker and similar subsidies “cannot afford to eat enough, cannot access necessary healthcare or medications, and frequently go into debt to pay their energy costs.”
