RBA May meeting minutes: Little room for upside risks to inflation

Reserve Bank of Australia May 2023 meeting minutes.

Headlines via Reuters:

• Board considered pausing or hiking 25 basis points in May policy decision
• Further increases in interest rates may still be required, but it would depend on how economy, inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term evolves
• Central forecast for inflation returning to top of target band by mid-2025 leaves little room for upside risks to inflation
• Risks include persistent services inflation, higher rent growth than forecast
• Concerned about weak productivity growth, possibility that a prolonged period of high inflation leading to shift in expectations
• Central forecast for inflation returning to top of target band by mid-2025 predicated on productivity growth returning to pre-covid level
• April's rate pause likely to have contributed to depreciation of Aussie dollar, rebound in housing prices
• Changes in asset prices need to be considered when assessing outlook for activity, inflation
• Members noted strong labour growth in March, high services inflation, easing in global banking stress
• Board determined to do what is required to bring inflation to target, still seeking to traverse narrow path

On balance a hawkish set of remarks, still eyeing inflation pressures. A nod to data dependence for future rate hikes.

Full text:

• Minutes of the Monetary Policy Meeting of the Reserve Bank Board