The Reserve Bank of Australia (RBA) has decided to pause its interest rate hiking cycle in April, providing Australian mortgage holders and small businesses a brief reprieve as they navigate challenging economic conditions.
At its board meeting on April 4, the central bank announced that it would keep the official cash rate stable at 3.6 percent after lifting it for 10 consecutive months.
The board said it recognised the lag effect of the monetary tightening policy and the fact that the full impact of the significant increase in interest rates since May 2022 had not flowed into the economy.
“The decision to hold interest rates steady this month provides the board more time to assess the state of the economy and the outlook in an environment of considerable uncertainty,” RBA governor Philip Lowe said….