The RBA has noted that a peak in inflation has passed, but that it is still too high and necessitated a further increase in interest rates.
Amid high services inflation, high labour costs and low productivity growth, there are still upside risks for inflation based on the global experience.
The Board will pay close attention to wages in particular, as the unemployment rate remains low, wages growth has increased and there is limited spare capacity in the labour force. The unemployment rate remains around 50-year lows, and is expected to rise gradually to 4.5% by mid-2025.
The RBA maintained a tightening bias in its statement, arguing “further tightening” may be required to get inflation back to target.
Source: CoreLogic May 2023
National Dwelling Values Overview
National home values rose 1% in the three months to April. This marks the first quarterly lift in home values since May last year.
Dwelling values in Australia are -8.0% lower over the past 12 months, leaving the annual decline steady on the 12 months to March.
The combined capital cities dwelling market value rose 0.7% in the month of April, following a 0.8% lift in March. This takes dwelling values 1.4% higher from a trough in February this year.
