The Reserve Bank of Australia weighed up raising the cash rate another 25 basis points before ultimately deciding to leave the target on hold at its September meeting, according to newly published meeting minutes.
The Board kept the cash rate target unchanged at 4.1 per cent on September 5, but minutes released on Tuesday reveal the central bank remained concerned about Australia’s inflation.
“Fuel prices had increased sharply in August. By itself, this would boost headline inflation in the September quarter, relative to expectations in early August,” the Board said. They observed a sharper deterioration in China’s economic growth posed a “downside risk” to the outlook for services exports and theorised lower output growth in the country could affect a range of Australian exports.
The Board said they needed to allow more time to see the full effects of consecutive interest rises, arguing the recent figures showed inflation is on track to return to target.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Michele Bullock starts as Reserve Bank GovernorReserve Bank Governor Michele Bullock started in the top job today, taking over from Philip Lowe. Ms Bullock also released a short corporate video which explains the Reserve Bank’s role. The new RBA Governor has been appointed for a seven-year term. Mr Lowe has ended his tenure after seven years in the position. The former RBA governor faced heavy criticism following the RBA’s interest rate hikes.
Read more »
Michele Bullock: the RBA governor not from central castingWhen Michele Bullock was interviewed in 1983 for a job at the RBA, she had the false impression she mucked up the job interview and wouldn’t be accepted.
Read more »
How eight RBA bosses handled 63 years of economic curveballsSince the RBA was formed in 1960, inflation has been up to 18 per cent and down to -1. Here’s how each governor dealt with their economic curveballs.
Read more »
ASX 200 LIVE: ASX to fall, Bullock’s term as RBA governor beginsAustralian shares to start week on the back foot. US, UK and Japan policymakers meet later this week. Follow updates here.
Read more »
Michele Bullock starts job as Australia’s first female RBA GovernorMichele Bullock will start her new job as Australia’s first female Governor of the RBA today. Ms Bullock will be replacing Philip Lowe, who faced a lot of criticism about his aggressive interest rate hiking as he tried to get inflation under control. According to experts, the first major move Ms Bullock will make on interest rates is a cash rate cut, forecasted for June next year. There’s an indication in the data that interest rate rises are having an effect as New South Wales’ unemployment rate rose to 3.6 per cent in August, making it the highest in 15 months, and 30,000 people are unemployed in NSW compared to June.
Read more »
ASX 200 LIVE: ASX to fall, RBA minutes pending, Instacart IPO pricing awaitedAustralian shares are set to open down. Wall Street finished little changed; Apple advanced, Arm dropped. Follow updates here.
Read more »