Minutes from the RBA’s March 18-19 meeting revealed there was no explicit discussion of rate hikes, a departure from previous announcements outlining options considered by the board. ing.
The Board assessed that it would take more time to have “sufficient confidence” that inflation would return to the target range within the foreseeable period. At the same time, he stressed that the priority is to “preserve labor market gains as much as possible.”
These considerations characterized the policy outlook as ambiguous, and the Board found it “difficult to rule out or rule out future changes” to the cash rate target.
While the labor market is moving closer to a situation synonymous with full employment, inflation remains high, although it is slowly declining towards its target. Given these observations, leaving the cash rate target unchanged was considered the most appropriate course of action.
The Board also recognized that the risks were becoming somewhat even, noting that recent data did not suggest “the emergence of upside risks to inflation” and I confirmed the deceleration.
