The RBA said it considered lifting the cash rate to 4.6 per cent this month amid concerns of a forecast lift in economic growth and persistently high inflation.
Already a subscriber?A forecast pick-up in economic growth has increased the risk that inflation could become entrenched, meaning interest rates will need to stay higher for longer, the Reserve Bank of Australia has warned.
JPMorgan chief economist Ben Jarman said the minutes showed the RBA was more concerned about high inflation than previously thought. Ms Bullock effectively ruled out cutting rates before Christmas at the post-board meeting press conference. “Hiking now could smack of fine-tuning and would be against a backdrop where other central banks are easing, or expected to ease policy.”
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