What happened
Official minutes from the Reserve Bank of Australia's September meeting showed the board unanimously voted to increase the official cash rate to 4.60%. The board noted that returning inflation to target in an environment of persistent supply shocks would require accepting slower economic and employment growth.
Why it matters here
The hawkish minutes confirm that inflation control remains the central bank's primary target, even at the expense of economic expansion. Australian mortgage holders and businesses face elevated debt servicing costs for longer, as the board keeps further rate hikes available if inflation risks persist.
What to watch
Incoming quarterly employment and inflation statistics ahead of upcoming board meetings to gauge whether additional monetary tightening will be triggered.
Source
brokernews.com.au