Reserve Bank keeps cash rate at 0.1 per cent amid Russia's Ukraine invasion turmoil

Wednesday 02 March 2022

The Reserve Bank has kept its cash rate target at 0.1 per cent, as it watches the unfolding economic fallout from Russia's invasion of Ukraine.

It means the benchmark official interest rate has been steady at 0.1 per cent for 17 months.

In a statement, RBA Governor Philip Lowe said the global economy was continuing to recover from the pandemic, but Russia's aggression in eastern Europe had complicated things.

"The war in Ukraine is a major new source of uncertainty," he said.

"Inflation in parts of the world has increased sharply due to large increases in energy prices and disruptions to supply chains at a time of strong demand. 

"The prices of many commodities have increased further due to the war in Ukraine.

"Bond yields have risen over the past month and expectations of future policy interest rates have increased."

 

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