Reserve bank

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.

Changes to the RBA announced last year formally came into effect this week, following the first board meeting of the year.

What is the cash rate? The Reserve Bank chose to leave the cash rate unchanged on Tuesday – the last meeting of 2023.

The 13th interest rate increase since May 2022 has re-ignited the debate about the use of higher interest rates to fight inflation.

Why did the cash rate rise? The Reserve Bank decided to raise the cash rate again on Tuesday, after keeping it unchanged since July.

The Reserve Bank of Australia (RBA) has kept the cash rate unchanged at 4.1% for a fourth consecutive month.

In his final speech, RBA Governor Philip Lowe has criticised the media for personal attacks but admitted he had “difficulties” communicating.

Inflation grew by 4.9% in the year up to July 2023, according to the latest figures from the Australian Bureau of Statistics.

RBA Governor Philip Lowe will not be re-appointed for a second term, replaced instead by his deputy Michele Bullock.

The RBA has left interest rates unchanged at 4.1% for the month of July, with RBA Governor Philip Lowe saying inflation has “passed its peak”.