Subject: Minutes - Monetary Policy Board Meeting - March 2026

⚡️ Highlights:

1. Inflation remains too high and there is excess demand in the economy, with a slight increase in excess demand since the previous meeting.
2. The rise in oil prices is expected to significantly increase inflation in March, leading to a need for further tightening in monetary policy in the near term.
3. Members discussed the possibility of raising the cash rate target at the current meeting to address inflationary pressures and bring inflation back to target within a reasonable timeframe.
4. There is uncertainty surrounding the impact of the current conflict in the Middle East on global and domestic economic conditions, which could affect future monetary policy decisions.
5. The majority of members decided to raise the cash rate target to 4.10 per cent, while a minority preferred to leave it unchanged at 3.85 per cent, highlighting differing views on the need for immediate tightening of monetary policy.

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