The Reserve Bank kept the cash rate on hold today, but suggested interest rates may rise earlier than previously thought.
Sky News Business Reporter Edward Boyd said the “big question” coming out of today’s Reserve Bank board meeting was “how would they respond to inflation getting back to within their target range at 2.1 per cent”.
“They want it between two per cent and three per cent; it’s now done that,” he said.
“What were they going to do; how were they going to respond? Well, they kept the cash rate on hold, but they did change their language.”