RBA Board Had ‘More Time’ to Assess Inflation, Minutes Show

Australia’s central bank had scope to extend an interest-rate pause because risks posed by Europe’s debt crisis and a slower-than-forecast domestic recovery eased inflation concerns, minutes of its July 5 meeting showed.

“The flow of recent information suggested both that there was more time to assess the likely strength of inflationary pressures in Australia and that it would be prudent to use that time,” according to the minutes released today by the Sydney-based Reserve Bank of Australia. “Growth in aggregate demand was not showing signs of a further pick-up yet.”