Reserve Bank of Australia Minutes
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