The decision impacts the 3.2 million Australians who have a mortgage on their own home and has flow-on effects across the entire economy.
The decision impacts the 3.2 million Australians who have a mortgage on their own home and has flow-on effects across the entire economy, but what factors actually influence whether the cash rate goes up or down?If there's one factor that influences interest rates more than anything else, it's inflation.
It excludes the most volatile price changes which, so is a good measure of "underlying" or "core" inflation – and is one of the key pieces of data the RBA looks at.How does the unemployment rate impact interest rates?Under the RBA charter, the central bank has to work towards the "maintenance of full employment in Australia".
"All of this was disrupted by a once-in-100-year event in a pandemic," RBA Governor Michele Bullock said in May.
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