RBA Board Prepares to Raise Rates Amid Inflation Risks

The Reserve Bank of Australia (RBA) has released its July monetary policy meeting minutes, revealing that the board is prepared to raise interest rates if upside inflation risks materialize.

Several RBA board members believe there are 'quite possible' upside risks to inflation that could crystallize, while others see offsetting downside risks and want more time to assess incoming data before making any decisions.

The current cash rate is seen as being at the top end of model- and market-based estimates of neutral, but these estimates are uncertain. The board also considered whether to raise the cash rate by 25 basis points or keep it unchanged.