Reserve Bank of Australia Holds Cash Rate at 4.35% Under New Eight-Meeting Annual Schedule

The Reserve Bank of Australia held its cash rate target at 4.35% on 19 March 2024. The decision was the second rate meeting conducted under the RBA's newly adopted schedule of eight formal policy meetings per year.

The Board noted in its post-meeting statement that labour market conditions continued to ease gradually but remained tighter than consistent with sustained full employment and target inflation. The RBA's inflation target band is 2–3%.

NEW MEETING SCHEDULE

The Board now meets eight times a year, down from eleven under the prior schedule. The change follows recommendations from an independent review of the Bank published in 2023, which called for longer deliberation periods between decisions, a more structured post-meeting communication process, and clearer separation between the Board's policy role and the Bank's broader management functions. Each meeting under the new format is followed by a press conference by Governor Michele Bullock.

The Board's statement emphasised that it is not ruling anything in or out with respect to future rate movements. Bullock has been clear that the Board will require sustained evidence of inflation returning to target before considering a reduction in the cash rate.

RATE CYCLE AND GUIDANCE

The RBA's rate-hiking cycle took the cash rate from a record-low 0.10% in May 2022 to its current 4.35%.

The Board has not provided explicit forward guidance on the timing of any future adjustment.