Interest rates forecast: What impacts the RBA’s interest rate decisions?

The decision on interest rates by the Reserve Bank impacts 3.2 million Australians with mortgages, with inflation being the primary factor influencing rate changes. The RBA aims to keep inflation between 2-3%, using interest rates to control it, while unemployment rates also play a role in determining rate adjustments. Despite other economic factors at play, inflation and unemployment are key considerations in setting interest rates in Australia.

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