RBA Governor Michele Bullock shifts stance on future rate rise warnings amidst union calls for a rate cut.

The Reserve Bank’s decision to remove a clear warning regarding future interest rate hikes has prompted the peak union body to call for an immediate cut to the cash rate.

In its third consecutive meeting on Tuesday, the central bank maintained the cash rate at 4.35 percent, awaiting further evidence of sustained low inflation. Unlike previous statements, the board did not explicitly mention the possibility of raising interest rates further, suggesting its series of 13 consecutive increases may have halted.

“The trajectory of interest rates needed to restore inflation to target within a reasonable timeframe remains uncertain, and the board is considering all options,” the statement noted, in contrast to previous meetings’ statements indicating, “Another rate hike cannot be ruled out.”

Governor Michele Bullock later addressed the change in tone, stating, “While we have adjusted our language, it’s in response to recent data confirming our overall trajectory remains consistent.”

Australian Council of Trade Union Secretary Sally McManus urged the RBA to act swiftly by cutting rates sooner rather than later.

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