Central Banks
RBA Resumes Rate-Hike Talk on Renewed Inflation Concerns
- Central bank aims to avoid ‘excessive fine tuning’ of policy
- Returning inflation to 2-3% target remains highest priority
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Australia’s central bank resumed a discussion of interest-rate hikes at its May policy meeting before deciding that the case to stand pat was stronger as it aims to avoid “excessive fine tuning.”
Minutes of the Reserve Bank’s May 6-7 gathering showed the board discussed two options when it left the key rate at 4.35%, noting the risks around its economic forecasts were still “balanced” despite stronger-than-expected data in the run-up to the meeting.