The Reserve Bank of Australia (RBA) has kept the cash rate at 4.35% for December, its ninth consecutive hold, while leaving the door open for a potential cut in February. The decision, first reported by ABC News, reflects the RBA’s focus on curbing inflation while addressing slow economic growth.
For homeowners, this means stable mortgage repayments for now, with hopes for relief in 2024. Businesses, especially in retail, may see improved consumer spending if rates drop. However, prolonged high rates continue to strain household budgets and limit growth.
The RBA’s cautious approach offers stability but also risks prolonging economic stagnation. While a February cut could boost growth, it might also delay achieving inflation targets.
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