Reserve Bank of Australia December 2024 Statement, in brief:
- Underlying inflation remains too high.
- The outlook remains uncertain.
- Board is gaining some confidence that inflationary pressures are declining in line with these recent forecasts, but risks remain.
- Board will continue to rely upon the data and the evolving assessment of risks to guide its decisions.
- While underlying inflation is still high, other recent data on economic activity have been mixed, but on balance softer than expected in November.
- There remains a high level of uncertainty about the outlook abroad.
- Wage pressures have eased more than expected in the November SMP.
- Taking account of recent data, the board’s assessment is that monetary policy remains restrictive and is working as anticipated.
Full text is here:
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The RBA left the cash rate unchanged today for the ninth meeting in a row, at a 13 year high. The Statement today is a little less hawkish than those in the past. A cut is in sight, but its not imminent. Notably the Bank has not repeated the "not ruling anything in or out" words, which is slightly less hawkish than it has been.
Still focused on inflation. Which is still too high: "underlying inflation remains too high".
Reserve Bank of Australia Governor Bullock will be speaking at 3.30 pm Sydney time
- 0430 GMT
- 2330 US Eastern time
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The next Reserve Bank of Australia meeting is February 17 and 18, 2025.
This article was written by Eamonn Sheridan at
www.forexlive.com.
