Reserve Bank of Australia May 2023 meeting minutes.
Headlines via Reuters:
- Board considered pausing or hiking 25 basis points in May policy decision
- Further increases in interest rates may still be required, but it would depend on how economy, inflation evolves
- Central forecast for inflation returning to top of target band by mid-2025 leaves little room for upside risks to inflation
- Risks include persistent services inflation, higher rent growth than forecast
- Concerned about weak productivity growth, possibility that a prolonged period of high inflation leading to shift in expectations
- Central forecast for inflation returning to top of target band by mid-2025 predicated on productivity growth returning to pre-covid level
- April's rate pause likely to have contributed to depreciation of Aussie dollar, rebound in housing prices
- Changes in asset prices need to be considered when assessing outlook for activity, inflation
- Members noted strong labour growth in March, high services inflation, easing in global banking stress
- Board determined to do what is required to bring inflation to target, still seeking to traverse narrow path
On balance a hawkish set of remarks, still eyeing inflation pressures. A nod to data dependence for future rate hikes.
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