RBA Says Hike Gave Space to Assess War Impact on Households

Australia’s central bank said raising interest rates for a third consecutive meeting would give the board scope to monitor how households and firms respond to the impact of the conflict in the Middle East that has sent fuel prices surging.

“While it was still uncertain, financial conditions would probably be somewhat restrictive after this decision,” the Reserve Bank said in minutes of its May 4-5 meeting released Tuesday in Sydney. The record of meeting showed members discussed whether to hike or pause, with eight of the nine-member board resolving there was a stronger case to raise rates to 4.35%.