RBA signals caution on February rate cut despite potential low inflation

The Reserve Bank of Australia (RBA) has indicated that a rate cut in February is not guaranteed, even if December inflation figures are low. The RBA wants to see two consecutive quarters of low inflation before making any changes to the current rate of 4.35%. The RBA's November meeting minutes highlight that while inflation may decrease due to a cooling rental market and energy bill relief, the board is cautious. They noted that household spending and job market conditions will also influence their decision on interest rates. Treasurer Jim Chalmers is expected to address the economy's state, pointing to improvements in consumer confidence and job creation. However, opposition leader Peter Dutton criticized the government for financial struggles faced by households, emphasizing the impact of high living costs.