Reserve Bank of Australia August meeting minutes
- The Reserve Bank of Australia considered a case to raise rates but decided that a steady outcome better balanced the risks.
- The RBA mentioned that the cash rate might have to stay steady for an "extended period."
- The RBA members agreed it is unlikely that rates would be cut in the short term.
- The RBA emphasized the need to be vigilant to upside risks to inflation, and that policy would need to remain restrictive.
- The RBA noted that an immediate hike in rates could be justified if risks to inflation had increased "materially."
- The RBA suggested that keeping rates steady for a longer period than implied by markets could help restrain inflation.
- The RBA board stated that they would need to reassess this possibility at future meetings.
- The RBA board judged that the risks had increased that inflation would not return to target in a reasonable time frame.
- The RBA board indicated that they had limited tolerance for inflation remaining outside of the target band.
The minutes lean hawkish:
- considered a case to raise rates
- unlikely that rates would be cut in the short term
but there is wiggle room, this, for example:
- would need to reassess ... at future meetings
But, if you want a one-word summary I think 'hawkish' would best fit. Agree/disagree - let me know in the comments.
AUD/USD is circa 0.6731 and not a lot changed.
The most recent update on the Reserve Bank of Australia website re the cash and inflation rates