RBA left rates on hold at 4.35 per cent in December after 'encouraging signs' past hikes were working against inflation
The Reserve Bank board left official interest rates on hold a fortnight ago given "encouraging signs" that aggressive hikes are working to win the inflation battle. In its final meeting of the year, the RBA board held the cash rate at 4.35 per cent despite concerns that inflation could remain above the 2 to 3 per cent target "for a prolonged period".
The meeting's pre-Christmas tone was cautious but according to the minutes, "members agreed there was sufficient value in waiting for further data to assess how the balance of risks was evolving", however "there had been encouraging signs of progress towards the Board's objectives and that this needed to continue".
Since the December 5 meeting, third quarter National Accounts showed economic growth flatlining with per capita GDP turning negative.
Also, the November unemployment rate ticked higher to 3.9 per cent as steam comes out of a still-tight jobs market.
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