The number: The Reserve Bank of Australia held the official cash rate at 4.1 per cent, as widely expected by the financial market and economists. Why it matters: The central bank reduced the cash rate last month in a line ball decision after inflation slowed sufficiently to warrant the first rate cut in nearly five years. Even so, governor Michele Bullock has repeatedly warned not to expect a series of rate cuts because the strong job market could threaten a sustainable return of inflation to target.
What has changed: A favourable monthly inflation report in February showed core inflation inching closer to target and a surprise dip in the labour market has reinforced expectations the RBA will cut again in May. What’s next: RBA governor Michele Bullock will hold a media conference at 3.30pm which is expected to provide more insights into the board’s decision-making.
