Headlines via Reuters:
- Board agreed to reconsider case for pausing at April meeting
- Restrictive policy and uncertain outlook meant appropriate at some stage to hold rates steady
- Pausing would allow time to reassess the outlook for the economy
- Board watching data on jobs, inflation , retail sales, business surveys, global developments
- Further tightening of monetary policy likely required to bring inflation down
- Inflation too high, labour market tight and business surveys solid
- Sluggish productivity could lead to more persistent inflation
- Board noted Australian interest rates below several other countries, could effect A$
- Recent data had been softer than expected, sluggish growth looked to have extended into Q2
- Board felt it prudent not to place too much weight on one period's data
- Board noted financial pressure on some borrowers, consumption a key uncertainty
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I noted earlier that this meeting was before the bank failures crisis. If the RBA was discussing pausing rates hikes prior to this then surely a pause is a lock on April 4? They are a timid bunch at the RBA and the crisis will be leaned on as a reason to pause.
Full text:
Minutes of the March 2023 Monetary Policy Meeting of the Reserve Bank Board
