The minutes of the Bank of Australia monetary policy meeting were released today with the most prominent headlines: -
- The board considered raising interest rates by 25 basis points or keeping them steady
- The Board agreed to keep interest rates steady after members agreed that recent information on inflation was encouraging
- The economy was only expected to grow slowly over the coming period and this would help further moderate inflation "
- The council saw a "reliable path" back to the inflation target with cash rates at 4.1%
- The Council agreed that further emphasis could be needed
- The need for further upside will depend on data and sophisticated risk assessment
- Inflation is heading in the right direction, although services inflation is very high
- Consumption has slowed dramatically even with the full impact of past narrowing yet to be felt
- The labour market has been resilient, but early signs may be at a turning point
- The council saw "reasonable scenarios" where inflation takes longer than acceptable to get back to the target
- Controlling persistent inflation requires more interest rate increases
- Staff inflation projections assumed a further rise, and rates were significantly lower than in other countries
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