RBA interest rates: Why borrowers may not see further relief despite inflation data

It was near the end of Reserve Bank governor Michele Bullock’s press conference explaining the decision to leave interest rates steady at 3.6 per cent that the question came.

ABC finance reporter David Chau asked Bullock directly about the bank’s change in messaging about the outlook for interest rate settings.

Michele Bullock faces journalists at her Tuesday press conference. Credit: Louie Douvis

“Your previous forecasts gave borrowers a lot of hope that interest rates would be cut quite significantly in the next 12 months. Now, those hopes appear to have been greatly diminished or even dashed,” he said.

Bullock noted that she and the bank’s monetary policy committee had been “fairly cautious” in making monetary policy predictions before getting to a key point about interest rates