“The RBA board kept the official cash rate at a record low 0.1 per cent at its first board meeting of the year on Tuesday and terminated its $350 billion pandemic bond buying program, citing significant improvements in the jobless rate and the broader strength of the economy.”
“The central bank also revised up its inflation forecasts following a surprisingly strong December quarter. It now expects underlying inflation to peak at 3.25 per cent later this year before moderating in 2023.”
“But despite currently being at the mid-point of the RBA’s 2 to 3 per cent target band and set to push higher for the first time in almost a decade, central bank governor Philip Lowe said the conditions for rate rises were not yet in place.”
Source: 7NEWS Australia
To read more, click the link below (AFR subscription required).