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RBA Hits Pause on Rates for the First Time This Year
Major bank economists expect the board to keep rates unchanged as inflation stays above target and mortgage relief is unlikely until 2027.
- On Tuesday, the Reserve Bank of Australia's Monetary Policy Board began its two-day meeting, with leading economists from all four major banks predicting the RBA will hold the cash rate at 4.35 per cent.
- Subdued economic growth and easing inflation pressures support the pause, though trimmed mean annual inflation remains elevated at 3.4 per cent in the 12 months to April, slightly up from 3.3 per cent in March.
- Westpac chief economist Luci Ellis warned of potential rate rises in August and September, noting "Although inflation remains above target" the board is assessing mixed trends of weak consumer markets versus elevated price pressures.
- Mortgage holders face continued pressure, with borrowers holding a $1 million mortgage paying about $450 more monthly compared to February, and relief unlikely until at least 2027.
- The RBA remains vigilant against the "inflation dragon" while global peers, including The Federal Reserve and Bank of England, are also expected to stand pat this week amid synchronized central bank caution.
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Coverage Details
Total News Sources10
Leaning Left3Leaning Right2Center1Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 17%
R 33%
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