DECEMBER INTEREST RATE ANNOUNCEMENT

RBA holds rates at record low as Omicron variant increases economic uncertainty

The official interest rate remains at a record low of 0.10 per cent, with the arrival of the new COVID-19 variant Omicron on Australian shores dampening some of the optimism around the economy’s strong rebound.

At its final meeting of the year on Tuesday, the Reserve Bank of Australia announced it would be keeping the cash rate target at the same level for the 13th consecutive month.

While a number of economists were forecasting a hike from the rock-bottom rate of 0.10 per cent by as early as the third quarter of 2022, now many believe that will be pushed back to 2023 or even further out to the RBA’s original plan of 2024.

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