Economic Buzz: RBA Minutes Suggest Further Steps Need To Be Taken To Normalize Monetary Conditions

19 Jul 2022 , 01:33 PM

The Reserve Bank of Australia released the minutes from its July 5 monetary policy meeting, highlighting a light day for Asia-Pacific economic activity. The central bank hiked its benchmark lending rate by 50 basis points, from 0.85 percent to 1.35 percent, citing the resilience of the economy and higher inflation. The bank also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.25 percent. The board members agreed that further steps would need to be taken to normalise monetary conditions in Australia over the months ahead. The size and timing of future interest rate increases will continue to be guided by the incoming data and the Boards assessment of the outlook for inflation and the labour market, including the risks to the outlook. The Board remains committed to doing what is necessary to ensure that inflation in Australia returns to the target over time.Powered by Commodity Insights