RBA Ready to Raise Rates on Inflation Risks

The Reserve Bank of Australia (RBA) has signaled its readiness to raise interest rates if upside inflation risks materialize. According to the RBA's July monetary policy meeting minutes, several board members judged that possible upside risks to inflation would crystallize.

However, other board members saw offsetting downside risks, suggesting there was 'some time' to assess incoming data before making a decision.

The current cash rate is seen as sufficient to bring the economy into balance, but the RBA will need further progress in the data to be certain about inflation returning to target within a reasonable timeframe.