Trade fears, stubborn inflation justifies RBA hold, while retail market remains challenged

The uncertainty over an escalating trade war, and other economic indicators and prevailing risk factors led the RBA to leave interest rates on hold.

Unsurprisingly, the new Reserve Bank of Australia (RBA) Monetary Policy Board decided to hold rates yesterday, given the uncertainty over the potential consequences associated with an escalating trade war, and other economic indicators and prevailing risk factors. Trimmed-mean CPI remains in the upper end of the RBA's target range, and a range of risk factors underscore this inflationary challenge. The latest national accounts show that productivity growth is non-existent, while March's Fed...

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Authors: Brendan Rynne, James Stewart

Published Date: 02 April 2025