Pic: eyeofpaul - stock.adobe.com
Inflation has seen a decline in recent months, with headline inflation dropping in July, aided by federal and state cost-of-living relief measures. However, underlying inflation, represented by the trimmed mean, was still 3.9 per cent over the year to the June quarter. The RBA's central forecast predicts that inflation will not sustainably return to the 2-3 per cent target range until 2026, the Reserve Bank Board said in a statement.
Economic growth remains sluggish, with GDP data confirming weak performance in the June quarter, largely due to ongoing restrictive financial conditions and reduced real disposable incomes. The labour market, while easing slightly, remains tight, with unemployment stabilising at 4.2 per cent in August.
The RBA emphasised the ongoing uncertainty in both the domestic and global outlook. While some central banks have begun easing monetary policy, the global economic landscape, particularly in China, remains a source of concern.
The RBA reiterated its commitment to bringing inflation back to target, stressing that monetary policy would remain restrictive until the Board is confident inflation is sustainably moving within the target range.
Fibre2Fashion News Desk (KD)