RBA Governor Leaves Australians Stretched on Interest Rates
The Reserve Bank of Australia (RBA) held its cash rate target steady at 3.6% in a move that has little to no surprise, given the blistering pace of inflation. The latest forecast from the RBA paints a grim picture for the next 18 months, with higher inflation setting the stage for another year of households struggling to keep up with the cost of living.
In a press conference after the monetary policy board meeting, Governor Michele Bullock sidestepped any concrete answers on future interest rate cuts, opting instead for the familiar sports cliche "meeting by meeting." For homeowners who have been stretched by rising mortgage payments, this lack of clarity is little comfort.
The RBA now expects inflation to linger above its 2-3% target range until at least 2027, with consumer price growth expected to reach 3.7% by mid-next year. This means that wages will struggle to keep pace with prices, leading to another difficult year for families trying to make ends meet.
The Albanese government's plans to extend power price relief beyond the current end-of-year deadline may provide some temporary reprieve, but it only serves to further muddy the waters when it comes to inflation. The RBA's forecast also suggests that even lukewarm economic growth might be too little to stem the tide of inflation.
In a surprising twist, the RBA predicts that unemployment will remain steady at around 4.4% over the next year, suggesting that the job market may not provide much respite for struggling households. Governor Bullock made it clear that the board is aiming for 2.5% inflation, with "just below three" being a non-starter.
The RBA's forecast also assumes another rate cut in 2026, but Governor Bullock warned against placing too much store in this prediction. When asked about the possibility of a future interest rate hike, she remained characteristically cryptic, saying that "anything's possible."
The Reserve Bank of Australia (RBA) held its cash rate target steady at 3.6% in a move that has little to no surprise, given the blistering pace of inflation. The latest forecast from the RBA paints a grim picture for the next 18 months, with higher inflation setting the stage for another year of households struggling to keep up with the cost of living.
In a press conference after the monetary policy board meeting, Governor Michele Bullock sidestepped any concrete answers on future interest rate cuts, opting instead for the familiar sports cliche "meeting by meeting." For homeowners who have been stretched by rising mortgage payments, this lack of clarity is little comfort.
The RBA now expects inflation to linger above its 2-3% target range until at least 2027, with consumer price growth expected to reach 3.7% by mid-next year. This means that wages will struggle to keep pace with prices, leading to another difficult year for families trying to make ends meet.
The Albanese government's plans to extend power price relief beyond the current end-of-year deadline may provide some temporary reprieve, but it only serves to further muddy the waters when it comes to inflation. The RBA's forecast also suggests that even lukewarm economic growth might be too little to stem the tide of inflation.
In a surprising twist, the RBA predicts that unemployment will remain steady at around 4.4% over the next year, suggesting that the job market may not provide much respite for struggling households. Governor Bullock made it clear that the board is aiming for 2.5% inflation, with "just below three" being a non-starter.
The RBA's forecast also assumes another rate cut in 2026, but Governor Bullock warned against placing too much store in this prediction. When asked about the possibility of a future interest rate hike, she remained characteristically cryptic, saying that "anything's possible."
! I mean, who do these people think they're kidding? 3.6% interest rates and still expecting us to keep up with the cost of living? It's like they want us to live on fumes or something 
. And now we know that inflation is going to be a real problem for years to come? 2027?! Are you serious? 
. It's like she's speaking a different language or something. Can't we just have some clear answers for once? Homeowners are already struggling with those mortgage payments, and now they're stuck in limbo because the RBA won't commit to anything 
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. We should be seeing some real action on inflation, not just vague promises and cryptic warnings 
. And what's with this 2-3% target range? Is that even a real number or just a joke? 
. The RBA's forecast is pretty bleak - inflation's gonna be above target for at least another 2 years, and wages won't be able to catch up with prices... that means families will be struggling even harder to make ends meet. It's not all doom and gloom though, I guess the Albanese government's power price relief plan might give some people a temporary break from the stress. But we really need more than just short-term fixes - when can we expect some real change? 
The RBA governor leaving and no interest rate cuts in sight is literally not a surprise to anyone who's been following the news for years 
The RBA's forecast is basically useless without any real projections or timelines 
I gotta say, I'm not surprised by the RBA's decision at all... 3.6% is still pretty steep for most Aussies. I mean, I get it, inflation's a thing and all, but can't we just talk about slowing down a bit? 
. And don't even get me started on the inflation forecast, 3.7%?! That's insane 
. I'm not sure how much more of this we can take. And what's with the "meeting by meeting" nonsense? Can't they just give us some real answers for once? 
anyone else feel like their money is just disappearing into thin air? 
i remember when my parents were younger and they could afford to live comfortably on one income... now it feels like we need two incomes just to get by. 
the rba needs to step up its game and give some real answers, not just that "meeting by meeting" nonsense 
. I mean, it's not like they can even save up for a rainy day or plan for the future without knowing what's going to happen next. The RBA needs to be more transparent and communicate its plans in a way that actually helps people understand what's coming down the pipe 
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. inflation's been on the rise and they're just trying to keep up with it 
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All this talk about inflation and people struggling to make ends meet doesn't bode well for Aussies. And what's with the governor being all cryptic about interest rate cuts? It's like she's playing a game of poker with our wallets 
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but let's be real, inflation is like that one friend who just won't leave...
. The fact that the RBA is still holding interest rates steady at 3.6% isn't helping either 
. I think we need some concrete answers from the Governor about future rate cuts or increases, but unfortunately, "meeting by meeting" just doesn't cut it for homeowners who are already feeling the squeeze 
4.4% unemployment rate over next year? that sounds super dire 
hope the gov extends power price relief or else ppl are gonna really feel it 
. I mean, who doesn't love paying more for everything they buy? Not me, that's for sure 
and i think it's gonna take ages for prices to calm down. 3.6% is still pretty high, and mortgage payments are already killing people's budgets