The minutes of the Reserve Bank of Australia's August 2024 meeting were released today, and the most important of them are as follows:
- The Reserve Bank of Australia considered the possibility of raising interest rates but decided that a stable outcome better balanced the risks.
- The Reserve Bank of Australia stated that the interest rate may remain fixed for an extended period.
- The Reserve Bank of Australia has suggested that keeping interest rates steady for longer than markets suggest could help rein in inflation.
- Members of the Reserve Bank of Australia agreed that interest rate cuts are unlikely in the near term.
- The Reserve Bank of Australia stressed the need for vigilance against the rising risks of inflation, and that policy should remain restrictive.
- The Reserve Bank of Australia noted that an immediate increase in interest rates can be justified if the risks to inflation increase strongly.
- The board of Directors of the Reserve Bank of Australia stated that they will need to reassess this possibility at future meetings.
- The board of Directors of the Reserve Bank of Australia noted that they have a limited tolerance for inflation to remain outside the target range.
