The Reserve Bank of Australia (RBA) published the Minutes of its August monetary policy meeting on Tuesday, highlighting that the board members considered a case to raise rates but decided that a steady outcome would better balance the risks. The central bank further stated that the cash rate might have to stay steady for an "extended period."

Key takeaways

The Reserve Bank of Australia considered a case to raise rates but decided that a steady outcome better balanced the risks.

The RBA mentioned that the cash rate might have to stay steady for an "extended period."

The RBA members agreed it is unlikely that rates would be cut in the short term.

The RBA emphasized the need to be vigilant to upside risks to inflation, and that policy would need to remain restrictive.

The RBA noted that an immediate hike in rates could be justified if risks to inflation had increased "materially."

The RBA suggested that keeping rates steady for a longer period than implied by markets could help restrain inflation.

The RBA board stated that they would need to reassess this possibility at future meetings.