The Reserve Bank of Australia (RBA) released minutes from its November policy meeting on Tuesday, highlighting that the case for a rate hike is stronger given rising downside risks. inflation. Other details in the RBA minutes suggest the central bank saw a risk that inflation expectations would rise if rates were not raised.
Key points
“Arguments were considered in favor of raising rates or keeping them stable.”
“The Council considered that a rate increase was not necessary at this meeting.”
“But he felt the case for an increase was stronger, given rising inflation risks.”
“The need for further tightening will depend on the data and risk assessment.”
“We saw the risk that inflation expectations would rise if rates were not raised.”
“It is important to avoid even a modest increase in inflation expectations.”
“The idea is growing among companies that cost increases could be passed on to customers.”
“Inflation forecasts for the meeting assume one or two more rate hikes.”
“The Board noted that the cash rate remained below that of many other countries.”
“The rise in house prices could indicate that monetary policy is not particularly restrictive.”
“Increasing population growth makes it more difficult to judge the resilience of the economy.”
“Inflation and the economy were slowing, geopolitical and global prospects are uncertain.”
“An escalation of tensions in the Middle East could hamper global growth.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
