FLAU - RBA minutes show board considers a hike of 25bp or an on-hold decision
2024-02-20 02:47:45 ET
- The Reserve Bank of Australia debated the possibility of raising interest rates further at its February policy meeting, but ultimately decided to maintain current monetary settings given signs of moderating inflation.
- The RBA also indicated that it needed more time to be confident that inflation was heading back to its target before ruling out any further rate increase.
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"The case to raise the cash rate further centered on the observation that it would take some time for inflation to return to target and the labor market to full employment," the minutes of the policy board meeting, led by Governor Michele Bullock, showed Tuesday.
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The meeting was held on February 5 and 6.
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"Increasing the cash rate target now would not prevent the Board from easing monetary policy if the economy were to weaken more sharply than envisaged," the minutes said.
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"Members agreed that it was important for the board’s public statement to make clear that inflation had moderated but was still high, and that it was not yet possible to rule in or rule out further increases in interest rates."
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Currency: ( USD:AUD )
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More on Australia economy:
- Australia's central bank holds cash rate at 4.35%, signals more interest rate hike
- Australia's ASX 200 hits an all-time high as producer inflation eases to 0.9% in Q4
- Australia’s CPI inflation declines to 0.6% in Q4, drops to 2-year low
- Australia services PMI contracts to 47.9, composite PMI drops to 10-month low in October
- Australia Q3 producer inflation advanced by 1.8% Q/Q amid higher prices