Particle.news
Download on the App Store

RBA Minutes Reveal 5–4 Rate Hike and Uncertain Path as Markets See More Increases

Policymakers flagged $100 oil from the Middle East conflict as a risk to June inflation near 5%.

Overview

  • The RBA, which published its March minutes Tuesday, said it cannot plan the path for rates with confidence because the Middle East war clouds the outlook.
  • The board lifted its benchmark cash rate by 0.25 points to 4.1% in a 5–4 vote, with most members wanting to move quickly to stop price expectations drifting higher.
  • Policymakers said oil near $100 a barrel could push headline inflation to about 5% in the June quarter.
  • Four members argued for waiting until May for clearer reads on growth, household spending, and the job market, yet they still saw more rate rises as likely.
  • Markets now put the odds of a May increase near 60%, while major banks tip more hikes this year as a cut to the fuel excise may lift demand.