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 stabilise inflation expectations, noting financial conditions are restrictive but only modestly so.

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 stabilise 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.