Monetary Policy Statement issued by the Reserve Bank of Australia - December 2024.

The Reserve Bank of Australia decided on Tuesday morning to keep the cash rate unchanged at 4.35%, as widely anticipated by market expectations, marking the ninth consecutive month at this level.

The key points noted in the monetary policy report issued by the Reserve Bank of Australia are:

• Recent data shows that core inflation in Australia remains very high.
• The Reserve Bank's outlook on interest rates remains uncertain.
• The Reserve Bank is gaining some confidence that inflationary pressures are easing in line with its recent expectations, but risks still remain.
• The Reserve Bank of Australia will continue to rely on data and periodic risk assessments to guide its monetary policy decisions.
• While core inflation remains high, other recent data on economic activity has been mixed, but overall economic activity was weaker than expected in November.
• There is still a high level of uncertainty regarding economic outlooks abroad.
• Wage growth pressures eased more than expected in the November monetary policy report.
• Considering recent data, the Reserve Bank's assessment is that monetary policy remains constraining and is operating as expected.