On February 6, 2024, the Reserve Bank of Australia (RBA) made a pivotal decision to maintain the cash rate at 4.35%, marking its first policy announcement of the year. This decision comes against a backdrop of gradually declining inflation, which eased to 4.1% in the December quarter, down from 5.4% in September.
The Delta outbreak has interrupted the recovery of the Australian economy and GDP is expected to have declined materially in the September quarter. The outbreak is affecting many parts of the economy, but the impact is uneven, with some areas facing very difficult conditions while others are continuing to grow strongly.