Home topics news Reserve Bank of Australia. Source: RBA Economy News Economy RBA holds cash rate at 10 basis points; says inflation to continue in the coming quarters Yajush Gupta April 5, 2022 In its monetary policy meeting of 2022, the Reserve Bank of Australia (RBA) board decided to keep the official cash rate – the rate banks pay to lend to and borrow from one another – at 0.1 per cent. The last time the RBA lifted the official cash rate was back in November 2010. In addition, the Board also decided to keep the interest rate on Exchange Settlement balances at zero per cent. “Inflation has increased sharply in many parts of the world. Ongoing supply-side problems, Russia’s invasion of Ukraine and strong demand as economies recover from the pandemic are all contributing to the upward pressure on prices,” RBA Governor Philip Lowe said. “In response, bond yields have risen and expectations of future policy interest rates have increased.” Jobless rate to fall below 4 pct The RBA’s central forecast is for the unemployment rate to fall to below 4 per cent this year and to remain below 4 per cent next year. “The strength of the Australian economy is evident in the labour market, with the unemployment rate falling further to 4 per cent in February. Underemployment is also at its lowest level in many years, the Governor said. “Job vacancies and job ads are at high levels and point to continuing strong growth in employment over