Reserve Bank of Australia

Summary Headlines via Reuters, bolding is mine:

Full text:


The minutes show then that:

  • "Members recognised the strength of both sets of arguments, concluding that the arguments were finely balanced,"
  • "They judged, though, that the case to raise the cash rate at this meeting was the stronger one."

This was after inflation held stronger than expected. It seems to me the RBA is still wearing those rose-coloured glasses and are over-optimistic. The case for a rate hike appeared to be pretty much bordering on a no-brainer for me. The jobs data last week make me lean the same way for the next meeting, coming up on July 4. But the RBA don't appear to share my view. And thus they risk slipping further behind the curve if they do not hike at the next meeting. I think that at the next meeting they'll decide 'on balance' to hike.

RBA Governor Lowe