Falling home prices in Australia mean another Reserve Bank rate hike is less likely, as the housing market has eased more than anticipated due to policy developments and softening sentiment.
The Reserve Bank of Australia held its cash rate at 4.35%, ending a streak of hikes. Governor Michele Bullock warned that further increases are possible if inflation doesn't fall to the 2-3% target, despite a potential Middle East ceasefire easing oil prices.
Reserve Bank of Australia raises cash rate for third consecutive meeting as governor says increases ‘are not going to do anything for inflation’ in next six monthsFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastUse our loan calculator to see how rate hikes could affect youThe Reserve Bank governor has said surging oil prices in the wake of the US-Israel war on Iran have made Australians poorer with “no way out”, after handing down an interest rate rise and warning more hikes could be needed.A week out from the federal budget, Michele Bullock also warned inflation would get worse if governments’ cost-of-living relief was not “targeting where it’s most needed”. Continue reading...
