RBA keeps interest rates on hold at 4.35pc, ASX closes higher as miners lift on upbeat commodity prices, Wall Street advances — as it happenedRBA governor Michele Bullock says she wants to be "much more confident" about inflation before considering a potential rate cut, after the central bank left the cash rate on hold at 4.35 per cent.
The rationale behind this 'higher for longer' mentality is the belief that inflation will remain stickier than previously thought; with the final push down from the most recent quarterly reading of 4.1% to the top of the RBA's target band of 3 percent being much more difficult to achieve than the relatively fast drop in the inflation that has occurred to date.
But it's too early for the RBA to contemplate cutting interest rates given the job of returning inflation to target is not yet done.the path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, andthe path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain andIn many respects there is nothing new in this information.
Ms Bullock said those planned pay increases have not been factored into the RBA's latest inflation forecasts, but she doesn't expect them to make much difference:"They've been historically underpaid for the work they do.
She continues by repeating that the RBA is keen to see more data become available, and how the economy is tracking with its forecasts. She believes that the economy is still "firmly" on the narrow path, which is what the RBA board is focusing on.Bullock is asked by a reporter from the Guardian to clarify whether a rate cut was considered at all in its board meeting, and what would put a rate cut on the table if it wasn't on it today.
She notes that the the board has determined that it's too soon to rule anything in or out when it comes to future interest rate decisions — which paves the way for the the first question: Telstra hasn't said how many people were affected by the issue, but stressed that Triple-0 services and mobile data weren't affected."The issue impacting mobile voice calls was fixed at around 2.30pm AEDT."The issue was caused by a software change and was fixed by rolling that back.Ms Murphy says that while the RBA is happy in its current holding pattern, the next quarterly CPI data will be crucial for the central bank ahead of its next meeting in May.
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