Minutes of the Reserve Bank of Australia September monetary policy meeting

The TL;DR version of these is they add nothing to what lowe spoke about last Friday, but I'm sure someone will come up with something obscure:

Headlines from the minutes via Reuters

  • All else equal, members saw the case for a slower pace of increase in interest rates as becoming stronger as the level of the cash rate rises
  • Inflation in Australia was at its highest level in several decades and was expected to increase further over the months ahead
  • Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time
  • Board was resolute in the need to ensure inflation returned to target, but mindful that the path to achieve this needed to account for the risks to growth and employment
  • Inflation was expected to peak later this year and then decline back towards the 2 to 3 per cent target range
  • Board is seeking to return inflation to target while keeping the economy on an even keel.
  • Labour market had remained tight and continued to indicate that the economy was having difficulty meeting the level of aggregate demand
  • Board expects to increase interest rates further over the months ahead, but it is not on a pre-set path
  • Discussed the arguments around raising interest rates by either 25 basis points or 50 basis points.
  • Medium-term inflation expectations remained well anchored
  • Interest rates have increased quite quickly and were getting closer to normal settings.

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WPAC and NAB have both issued +50bp rate hike forecasts for the RBA October (4th) meeting in past days.

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