Subject: Minutes of the Monetary Policy Board Meeting

⚡️ Highlights:

1. Data since the previous meeting has been stronger than expected, with inflation currently too high and expected to remain above target until mid-2028.

2. Aggregate demand exceeds aggregate supply, leading to a tight labor market and stronger-than-expected output growth.

3. Financial conditions have eased since mid-2025, with concerns that they may no longer be restrictive, despite market expectations for a cash rate increase.

4. The Board considered leaving the cash rate unchanged to gather more evidence, but ultimately decided to increase it by 25 basis points to 3.85% due to concerns about persistent inflationary pressures and shifting risks to meeting inflation and full employment objectives.

5. Future policy decisions will depend on evolving risks and data, with the Board remaining focused on delivering price stability and full employment.

✍️ Reserve Bank of Australia | Full Article

❤️ Sent with love,