The meeting result:
A couple of points (in summary) made by the Reserve Bank of Australia Governor Lowe in his Statement accompanying the decision:
- Board resolute in determination to return inflation to target, will do what is necessary to achieve that
Board expects to increase interest rates further over the period ahead
Inflation in Australia is too high,
A further increase in inflation is expected over the months ahead
Board is not on a pre-set course
Labour market remains very tight
Board’s priority is to re-establish low inflation and return inflation to the 2–3 per cent range over time
Its difficult to ready anything into those points other than there will be further rate hikes in the months to come. The RBA next meet on February 7. I expect another 25bp rate hike then.
The Minutes will be eyed for further nuance. They'll be published Wednesday, 21 December 2022 at 0030 GMT.
