Interest rates could rise again ‘should inflation prove more persistent than expected’, RBA suggests

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Interest rates could rise again ‘should inflation prove more persistent than expected’, RBA suggests
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The Reserve Bank weighed up the option of lifting rates earlier this month but determined ‘there had not been sufficient new information’

The prospect of another official interest rate increase will hinge on upcoming data on jobs and prices, with the Reserve Bank declaring it had “a low tolerance” should inflation not slow at the pace it has previously expected.

“There had not been sufficient new information over the preceding month from economic data or financial markets to necessitate” an increase, the minutes said. “Some further tightening of policy may be required should inflation prove more persistent than expected,” the RBA said.

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