Sydney Australia skyline

Australia Monetary Policy March 2022

Australia: RBA keeps rates unchanged in March

At its monetary policy meeting on 1 March, the Reserve Bank of Australia (RBA) decided to keep the cash rate unchanged at the all-time low of 0.10%, as widely expected by markets.

The decision came on the back of a resilient economy, a tighter labor market, faster but still-moderate wage growth and rising inflation. Despite higher wage growth and inflation, the Bank opted to stand pat amid considerable uncertainty regarding the level of inflation in the medium term; it depends on the future evolution of energy prices and supply chain disruptions. The Bank expects underlying inflation to reach 3.3% throughout 2022, before declining to around 2.8% over 2023, as supply constraints ease and consumption patterns normalize.

The Bank maintained a dovish tone in its communiqué, stating that it is “committed to maintaining highly supportive monetary conditions to achieve its objectives of a return to full employment and inflation”. Moreover, it reiterated that it will not raise the cash rate before inflation is sustainably within the 2.0%–3.0% target range, adding that this could require the RBA to “be patient”.

The next monetary policy meeting is scheduled for 5 April.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest