A pivot from the Reserve Bank to scrap an explicit warning about further interest rate rises has the peak union body calling for the cash rate to be cut now.
The central bank kept the cash rate on hold for a third straight meeting on Tuesday at 4.35 per cent, as it awaits more evidence that a sharp downturn in inflation will continue.
But unlike previous statements, the board made no explicit mention of the possibility of an additional increase in interest rates, suggesting its aggressive run of 13 rate increases may have ended.
“The path of interest rates that will best ensure that inflation returns to target in a reasonable time frame remains uncertain and the board is not ruling anything in or out,” the statement read.
The statements following previous meetings have been more direct, stating: “A further increase in interest rates cannot be ruled out.”
Speaking later, Governor Michele Bullock was quick to downplay the change in sentiment.
“We have changed the language, that’s true, but that was in response to some data, which has demonstrated to us that we are still broadly on the path we thought we were on,” Ms Bullock told reporters.
Australian Council of Trade Union secretary Sally McManus sa...
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