Businesses across Australia will rest easier following the decision by the Reserve Bank to hold the cash rate at 4.1 per cent. 

“The decisions by Reserve Bank to hold interest rates at the last three meetings have been the right ones. The earlier rate rises are clearly having an impact,” ACCI chief executive officer Andrew McKellar said. 

“The economy is evidently slowing, with data earlier this week showing household spending falling by almost one per cent over the year to July. Inflation settled back to 4.9 per cent in July and there was a slight increase in the unemployment rate of 3.7 per cent.  

“There is growing evidence that we have passed the peak of the cycle and there is no need for further rates rises.  

“The focus must now be on maintaining economic growth to reduce the risk of recession.”  

This was the final Reserve Bank Board meeting to be chaired by Philip Lowe.  

“Australian business acknowledges Philip Lowe’s distinguished service at the Reserve Bank over more than forty years. As Governor, he has led the bank through some tumultuous times. It is through his reforms that the institution is better positioned to manage the challenges of the future.”