Australia Interest Rate

The Reserve Bank of Australia continued to worry about upside inflation risks, minutes of the central bank's June policy meeting showed. It added that incoming data had reinforced the need for the central bank to remain vigilant, noting that the strategy of returning inflation to target in a reasonable timeframe without moving away significantly from full employment was becoming narrower. With uncertainty heightened at present, members emphasized the importance of paying close attention to economic data. "The extent of uncertainty at present meant it was difficult either to rule in or rule out future changes in the cash rate target." The board intended it will continue to pay close attention to developments in the global economy, trends in domestic demand, and the outlook for inflation and the labor market. The RBA again mentioned that bringing inflation to target remains the board’s highest priority and it will do what is necessary to achieve that outcome.