The Reserve Bank of Australia (RBA) published the Minutes of its March monetary policy meeting on Tuesday, highlighting that the Board members did not consider the option for an interest rate rise. Additional details of the RBA Minutes suggest that it was difficult to either rule in or out future changes in the cash rate. 

Key takeaways

“No mention in minutes that board considered option to raise rates.”

“Board agreed it was difficult to either rule in or out future changes in cash rate.”

“Economic outlook uncertain but risks seemed broadly balanced.”

“Would take "some time" before board could be confident inflation returning to target.”

“Upside risks to inflation had not yet materialised, while consumption was very weak.”

“Inflation high but gradually returning toward target, labour market easing.”

“Gap between demand and supply in economy "closing relatively quickly”.”

“Board judged demand would continue to exceed supply for a time

Labour market a little tighter than consistent with inflation at target.”

“Wage growth may have peaked, but not expected to decline quickly.”

“Recovery in productivity needed to balance high unit labour “costs.”

Overall financial conditions remained restrictive, particularly for households