RBA November Minutes: Bullock Not Ready to Cut Rates

The Reserve Bank of Australia has decided to maintain the cash rate at 3.6% for the foreseeable future, with indications that interest rates may remain unchanged for several months. Core inflation rose to 3% for the year ending in September, prompting the RBA to reassess inflationary pressures, which may be broader than previously thought. Following a drop in the unemployment rate to 4.3%, the RBA’s forecasts suggest inflation will settle close to its target midpoint, necessitating a hold on rates through next year. The minutes also highlighted persistent concerns about home building costs and service-related inflation, indicating a more complex inflation landscape than anticipated.

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