- 20 Jun '23 at 6:35 am #60629TrumanParticipant
The RBA announced meeting minutes and traders marked the AUD lower.
According to the minutes, the Reserve Bank of Australia (RBA) discussed the potential for a 25 basis points rate rise. The board was split but ultimately decided that an immediate hike was necessary to ensure inflation would return to the target over a “reasonable” timeframe. Factors such as the increased risk of inflation expectations rising, higher-than-expected wage increases, and rising electricity prices and rents were cited as key inflation risks. Additionally, productivity was described as disappointing and in need of improvement to balance the wage increases.
The board also noted signs of slowing consumer spending in Q2 and warned of the potential for a sharper economic slowdown due to lags in policy. Despite these concerns, falling commodity and shipping prices could alleviate some inflation pressure. The board concluded that they would continue to monitor household spending and financial stress closely and reiterated their commitment to do what is necessary to bring inflation to the target.03 Jul '23 at 11:32 pm #59871CorporalParticipant
The Reserve Bank of Australia left rates unchanged at the July meeting in line with consensus once again but with markets pricing a return to hiking l
[See the full post at: RBA Holds Rates at Ten Year High 4.10%, Signals Hiking Cycle Near End]
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