The Reserve Bank of Australia (RBA) has announced that the cash rate will remain unchanged at 4.35% in June 2024.
Cash rate for June 2024
Despite keeping the rate the same, the RBA said Australia’s economic outlook remains “uncertain” and that “process of returning inflation to target is unlikely to be smooth”.
The RBA’s target range for inflation is 2-3%. Most recent data shows that current inflation is 3.6%.
In a statement, the RBA said it would “do what is necessary” to return inflation to its target range.
About the RBA
The RBA is Australia’s central bank. Its key responsibility is setting the ‘cash rate‘ — an interest rate it charges commercial banks for short-term loans.
This rate influences the cost of borrowing across the economy, so changes to the cash rate are often called changes to ‘interest rates’.
The RBA has regularly raised interest rates over the last two years to fight rising prices (inflation) by curbing spending. The cash rate for June 2024 is 4.35%. For comparison, it was 0.10% at the start of 2022.
