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Australia RBA Cash Rate Target 4.35% (consensus 4.35%) in Feb-24

• The RBA's decision to hold the policy rate steady at 4.35% reflects its cautious approach in light of moderating inflation, particularly in the goods sector, against persistent services inflation and high domestic cost pressures.
• Economic outlook uncertainties, including global risks, domestic demand dynamics, and labour market tightness, influence the RBA's policy deliberations, with a continued focus on returning inflation to the target range in a balanced and data-driven manner.
• The RBA emphasizes the priority of inflation targeting within its mandate, indicating that while recent trends show inflation easing, the potential for further interest rate hikes persists, contingent on incoming data and a rigorous assessment of evolving risks.

Australia CPI Inflation 4.1% y-o-y (Consensus 4.3%) in Q4-23

- Australia's CPI inflation rate declined to 4.1% YoY in Q4-23, undershooting consensus expectations by 0.2 percentage points.
- The current below-average inflation rate benefitted from a surprisingly steep easing of core pressures.

Australia Unemployment Rate 3.86% (consensus 3.8%) in Nov-23

- Australia's unemployment rate in November 2023 is reported at 3.86%, slightly above the consensus forecast, reaching its highest level since May 2022.
- The employment change shows an increase of 61,500 jobs, indicating a positive expansion in employment opportunities.

Australia RBA Cash Rate Target 4.35% (consensus 4.35%) in Dec-23

• The RBA's decision to hold the policy rate at 4.35% after a period of rate hikes, reflects a cautious approach in response to persistent services inflation and the need to assess the cumulative impact of previous rate increases.
• Future policy decisions will hinge on evolving economic data, particularly regarding inflation trends, global economic developments, and labour market conditions, with a continued focus on returning inflation to the target range.
• The RBA is navigating a complex economic environment, balancing the need to control inflation with the potential risks of a slowing economy and global uncertainties, including the situation in China and international conflicts.