The Reserve Bank of Australia has stated in the minutes of its last meeting that the war in Ukraine was a major new source of uncertainty.
Key comments
Board will not raise the cash rate until actual inflation is sustainable within the 2%-3% target range.
Although inflation had picked up, members agreed that it was too early to conclude that it remained sustainable within the target range.
The Australian economy remained resilient and spending was expected to pick up further after the Omicron outbreak.
The board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve.
The war in Ukraine and the associated rise in energy prices had created additional uncertainty about the inflation outlook.
There was uncertainty about how a persistent uptick in inflation would account for recent developments in global energy markets and continuing supply-side problems.
About RBA Minutes
The Reserve Bank of Australia (RBA) publishes the Minutes of its monetary policy meeting two weeks after the interest rate decision is announced. Provides a detailed record of the discussions held between RBA board members about monetary policy and economic conditions that influenced their decision to adjust interest rates and/or purchase bonds, which had an impact significant in the AUD. The minutes also reveal considerations on international economic developments and the value of the exchange rate.
Source: Fx Street
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