The summary of the minutes at the Reserve Bank of Australia was as follows: -
- The board of Directors has considered the possibility of raising the interest rate by 25 basis points or fixing it.
- The case of constancy was the strongest, which is appropriate given the balanced risks to the forecast. - The data gave the board more confidence that inflation will return to the target in a reasonable time frame.
- But it will take some time before the board is confident enough about inflation.
- It is therefore appropriate not to rule out another increase in interest rates.
- Raising interest rates will not prevent us from reducing in case of a weak economy.
- The observed forecast of the return of inflation to the target in 2025 assumes that no further increases in interest rates will occur.
- Goods inflation fell faster than expected, services inflation remains high.
- Labor market and consumption data are weaker than expected.
- The impact of rising inflation, higher taxes and interest payments on consumption.
- The labor market is relatively tight; wage growth is slowing in some sectors.
- Financial conditions are restrictive for some measures, less restrictive for others.
