{"id":134750,"date":"2023-10-17T22:19:04","date_gmt":"2023-10-17T22:19:04","guid":{"rendered":"https:\/\/myfintale.com\/?p=134750"},"modified":"2023-10-17T22:19:04","modified_gmt":"2023-10-17T22:19:04","slug":"rba-board-has-low-tolerance-for-higher-inflation-minutes-show","status":"publish","type":"post","link":"https:\/\/myfintale.com\/economy\/rba-board-has-low-tolerance-for-higher-inflation-minutes-show\/","title":{"rendered":"RBA Board Has Low Tolerance For Higher Inflation, Minutes Show"},"content":{"rendered":"
The board of the Reserve Bank of Australia has a low tolerance for a slower return of inflation to the 2-3 percent target than expected, the minutes of the monetary policy meeting held on October 3 said Tuesday. <\/p>\n
Any further action on interest rates will depend on the incoming data and how these alter the economic outlook and the evolving assessment of risks, the central bank minutes showed.<\/p>\n
Policymakers considered two options at the meeting, either raising the interest rate by a further 25 basis points or holding the rate unchanged, the RBA minutes said.<\/p>\n
The board maintained the cash rate target at 4.10 percent in the October policy session, which was at the first chaired by the new governor Michele Bullock. <\/p>\n
“In reaching their decision, members noted that some further tightening of policy may be required should inflation prove more persistent than expected,” the minutes said.<\/p>\n
Capital Economics’ economist Marcel Thieliant said the RBA will deliver a final 25 basis point rate hike at its November meeting.<\/p>\n
The Australian central bank has raised its key rates by 4 percentage points since May last year.<\/p>\n
At the October meeting, the board repeated that policymakers are willing to do what is necessary to bring the inflation back to the target within a reasonable timeframe. <\/p>\n
On house prices, the board said rising house prices alone would not warrant tighter policy. <\/p>\n
“The rise in housing prices could also be a signal that the current policy stance was not as restrictive as had been assumed, although there was other evidence that monetary conditions were tight,” the minutes said. <\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The board of the Reserve Bank of Australia has a low tolerance for a slower return of inflation to the 2-3 percent target than expected, […]<\/a><\/p>\n<\/div>","protected":false},"author":3,"featured_media":134749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"yoast_head":"\n