RBA Signals Rate Hike Readiness Amidst Upside Risks

The Reserve Bank of Australia (RBA) is ready to raise interest rates if upside risks materialize, according to the minutes from their recent meeting.

The RBA's primary mandate is to maintain price stability, which means an inflation rate of 2-3%, and also contribute to the stability of the currency, full employment, and economic prosperity and welfare of the Australian people.

The central bank uses interest rates as its main tool for achieving this goal. Higher interest rates will strengthen the Australian Dollar (AUD), while lower rates will weaken it.