The RBA Board has made a decision to raise the cash rate target by 25 basis points to 3.60% during its meeting on 7 March 2023.
- The RBA raised the cash rate by 25 basis points
- The cash rate as of 7 March 2023 is 3.60% per annum
- RBA’s next cash rate decision will be made on 4 April 2023.
In his statement on the RBA’s decision, Governor Dr Philip Lowe said, “The board’s priority is to return inflation to target. High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later, involving even higher interest rates and a larger rise in unemployment. The board is seeking to return inflation to the 2–3% target range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.
“Growth in the Australian economy has slowed, with GDP increasing by 0.5 per cent in the December quarter and 2.7 per cent over the year. Growth over the next couple of years is expected to be below trend. Household consumption growth has slowed due to the tighter financial conditions and the outlook for housing construction has softened. In contrast, the outlook for business investment remains positive, with many businesses operating at a very high level of capacity utilisation.”
Read RBA’s full media release by clicking this link RBA’s cash rate decision for March 2023.
The RBA’s decision to raise the interest rates was not surprising, as it had communicated its intention to do so, and therefore, the decision was in accordance with the market’s anticipations.
When is the Next RBA Meeting?
The next RBA meeting will be held on 4 April 2023.
The RBA has published a calendar for its meeting schedule for 2023. You can access this calendar by clicking this link RBA 2023 calendar.
The dates marked in red colour are the dates when RBA will meet to make a decision on the cash rate.
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