Interest rates on hold for eighth-straight meeting

KPMG does not discount the possibility of inflation persisting above target for longer, but this is not our central view, writes Brendan Rynne.

There were no Melbourne Cup Day shocks yesterday, with the Reserve Bank (RBA) keeping the cash rate steady at 4.35 per cent - but more surprising was the hawkish tone of the Statement and the only marginally softer forecast for core inflation for the outlook period. The RBA's statement suggests either that it believes the economy is more robust than the average household is feeling at the moment, or that some type of stagflation has set in.   If the latter, it is not a classic stagflat...

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Authors: Brendan Rynne

Published Date: 06 November 2024