RBA minutes: A further increase of inflation was expected
|The minutes of the Reserve Bank of Australia are being drip-fed through the wires adding more colour surrounding the Board’s views and are so far supporting AUD/USD that was already correcting an hourly bearish impulse.
RBA minutes
Inflation had picked up, and a further increase was expected.
Australian economy had remained resilient, and spending was picking up following the setback caused by the outbreak of the omicron variant.
Measures of underlying inflation in the March quarter are expected to be above 3%.
Wages growth had also picked up but, in aggregate terms, had been below rates likely to be consistent with inflation being sustainably at the target.
The strength of the Australian economy was evident in the labour market
These developments have brought forward the likely timing of the first increase in interest rates.
Over the coming months, additional evidence will be available on both inflation and the evolution of labour costs.
Members noted that higher prices for petrol and other commodities would further lift inflation over coming quarters.
Members agreed that financial conditions in Australia remained highly accommodative.
About the RBA minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a complete account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.