RBA minutes of the meeting that the bank discussed a 25 basis point rate hike versus steady
Minutes of the Reserve Bank of Australia's (RBA) recent monetary policy meeting revealed the board considered raising rates by 25 basis points in October, but board members saw interest rates remain unchanged
- Members indicated that data on inflation, jobs, and updated forecasts will be available at the November meeting
- Members acknowledged that the upside risk of inflation was a "major concern"
- Progress in reducing inflation in the services sector has been slow
- Further tightening may be needed if inflation continues more than expected
- It is possible that rising house prices could support consumption, and this could be a signal that policy is not as tough as it is supposed to be
- The full effects of previous increases in data won't appear for months
- Data suggests the economy continued to grow modestly in the Sept.
- Members believe the labor market has reached a tipping point with few signs of a wage and price spiral
- The fall in the Australian dollar against the US dollar has eased monetary conditions, albeit only on the margin
- The weight of Australian dollar trade is slightly lower than at the start of the year, limiting the impact on imported inflation
- Challenges for China's economy could affect Australia if not contained
