After a run of interest rate increases that has not occurred for more than 30 years, the Reserve Bank on Tuesday signalled an end to the hikes of the past year as it worries about the risks of the economy slowing faster than expected.
For the first time since April last year, the RBA has now gone two months without increasing rates. And the language in the governor’s statement suggests that unless the wage growth data out in two weeks or the next inflation figures show a surprising increase, the cash rate is unlikely to go higher than 4.1%.
