Today's welcome decision from the Reserve Bank comes at a time of moderating underlying inflation, market volatility and global economic uncertainty.
Australians are doing it tough already, the last thing they needed was more cost of living pressure.
It's a decision which recognises the progress we've made on inflation, the softness in our economy, and very substantial global pressures.
We've seen significant volatility in international markets in recent days and our own markets have been impacted as a result.
This market volatility has been driven by weaker than expected jobs growth and tech earnings in the US, as well as rising Japanese interest rates impacting investor sentiment in Asian markets.
Australia is not immune from these global developments, we've seen them reflected in the Australian dollar and our own share markets.
I've been briefed by Treasury today on this volatility and will be kept up to date on developments as they unfold.
Our Government has always put a premium on responsible economic management, and it's especially important now.
Today's decision comes as price pressures in our economy trend downwards, after annual trimmed mean inflation moderated for six consecutive quarters.
While headline inflation is more persistent than we would like, it is less than half its peak and much lower than the 6.1 per cent we inherited at the election.
Having rates on hold since November last year provides some extra certainty to mortgage holders and small businesses who are already under pressure.
The RBA Board's statement forecasts that headline inflation is expected to dip below 3 per cent in the next year due to the Government's cost of living measures.
We have made encouraging progress in the fight against inflation and we are confident Australia will see a soft landing for our economy, but this volatility around the world is a warning against complacency.
We know Australians are still doing it tough and that's why the Albanese Labor Government is rolling out substantial and responsible cost of living relief to help the fight against inflation.
The ABS data last week showed our policies across energy bill relief, cheaper child care and rent have taken half a percentage point off inflation.
We have also delivered the first back to back surpluses in almost two decades, which the RBA Governor has said are helping in the fight against inflation.
Today's decision is not a surprise. We know our economy is soft and that previous rate rises are already slowing our economy, and the progress we've made on getting inflation down is making a difference.
Our economic plan is all about fighting inflation and easing cost of living pressures without smashing the economy.
We're doing our bit to ease the pressure on Australians through our responsible budget strategy, tax cuts for every taxpayer and energy rebates for every household and a million small businesses.
