Reserve Bank of Australia Minutes: Governing Council agrees to revisit interest rate freeze case

Restrictive policy and an uncertain outlook are appropriate at some stage to keep rates steady

TOEFF provides time to reassess the outlook for the economy

The board tracks data on jobs, inflation, retail sales, business surveys, and global developments.

Further tightening of monetary policy is likely to be needed to reduce inflation

Inflation is very high, the job market is competitive and business surveys are strong

Reduced productivity can lead to more persistent inflation

The board noted that Australia’s lower interest rates than several other countries could weigh on the Australian dollar

Recent data has been softer than expected and growth appears to have continued into the second quarter

The Board felt it prudent not to place too much weight on single-period data

The board noted the financial pressure on some borrowers, consumption a key uncertainty