RBA Minutes of the Monetary Policy Board Meeting

The Reserve Bank of Australia (RBA) has published the minutes of its most recent monetary policy meeting which concluded 1 April 2025, with the Board deciding to leave the cash rate unchanged at 4.10 per cent, and the rate on Exchange Settlement balances unchanged at 4.00 per cent. 

Members observed that the implications of US tariffs for inflation could further complicate the global economic outlook, but that the extent to which these international developments would affect the Australian economy was a further source of uncertainty and depended on a range of factors. 

On domestic economic conditions, members noted that Australia’s GDP growth had picked up in the December quarter 2024, broadly as expected and consistent with a continued recovery in domestic demand. 

Looking further ahead, members noted that the RBA and other regulators were attentive to vulnerabilities that might build in the financial system if households responded to an actual or anticipated easing in financial conditions by taking on excessive debt, and while lending standards were currently sound, historical experience suggested that periods of lower interest rates can coincide with riskier borrowing activity, a rapid increase in house prices and a relaxation of lending standards.