The Reserve Bank of Australia (RBA) has announced its December 2024 cash rate decision.
The cash rate will remain unchanged at 4.35%.
It’s the ninth decision in a row where the RBA has maintained the same rate.
In a statement, the RBA Board said that while “inflationary pressures are declining,” it still believes that “risks remain”.
RBA December 2024 decision
The RBA partly bases its decisions on underlying inflation, which measures the rate of price growth once you remove extremes on either side (such as a sudden fall in energy prices).
The latest data showed underlying inflation, also known as the ‘trimmed mean’, was at 3.5%. The RBA said this “remains too high”.
The RBA’s target range for underlying inflation is 2-3%.
