Reserve Bank Cautiously Optimistic About Inflation Drop

RBA holds cash rate steady as tight labour market delays inflation’s return to target, projecting stability by 2026.

Governor of the Reserve Bank of Australia (RBA) Michele Bullock speaks to the media during a press conference in Sydney, Australia, on Feb. 6, 2024. AAP Image/Bianca De Marchi

The Reserve Bank of Australia (RBA) has expressed tentative optimism following a notable drop in inflation. Governor Michelle Bullock has urged patience, stressing the importance of sustained progress.

The Australian Bureau of Statistics (ABS) reported that the Consumer Price Index (CPI) held steady at 2.1 per cent for the 12 months to October 2024, marking the lowest annual inflation rate since July 2021.