Minutes of the Reserve Bank of Australia (RBA) Sep. 28–29 meeting, published
Tuesday, show the board briefly considered leaving the cash rate unchanged but
then voted unanimously to raise it to 4.6%. The minutes point to
stronger-than-expected domestic demand and a spike in oil prices from the Middle
East conflict that has increased global cost pressures. The board said timely
action was needed to stabilize inflation expectations, noting financial
conditions are restrictive but only modestly so. Given excess domestic demand
and higher global energy costs, the RBA judged inflation may prove more
persistent and said a fifth rate increase this year remains possible if
required.
