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RBA rate pause only just made it

This month’s cash rate pause only just got past the keeper, with board members of the Reserve Bank of Australia considering it could have been better to continue to raise them to get inflation back to target.

The Reserve Bank of Australia has released the minutes of its Monetary Policy Meeting earlier this month, where it decided to leave the cash rate target unchanged at 3.6%, and the rate on Exchange Settlement balances also unchanged at 3.5%.

But its members suggested near-term projections for population growth that would put pressure on housing, and the heightened risk of larger wage increases in parts of the economy, including the public sector, later in the year, were cause to keep rates on the up.

The central banks’ next Monetary Policy decision meeting is on the second of May, with the jury currently out on tipping either way. 

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