Australia Interest Rate

Monetary policy in Australia will be sufficiently restrictive until the central bank is confident that inflation is moving sustainably towards the target, minutes of the RBA's November policy meeting showed. It added the board remains vigilant to upside risks to inflation, noting that headline inflation is forecast to stay within the intended goal of 2–3% until Q3 2025, when the scheduled end to energy rebates would see it pick up. Meantime, the outlook for underlying inflation has little changed since the August meeting. Members agreed future rate policy will depend on data and the evolving risk assessment but rate adjustments can be made if the board views the policy stance as not tight enough. Globally, the RBA sees risks from a change in US policy after the presidential race and uncertainties around how other countries respond. On the GDP front, growth has been subdued in Q2 but looked to have picked up since then due to a sustained rise in household consumption from H2 of 2024.