RBA minutes show board considered lifting rates earlier this month

The Reserve Bank minutes show the board considered lifting rates earlier this month but decided to hold the cash rate steady. While inflation had risen more than expected in the first quarter, CPI was still on a downward pathway. “Inflation was still declining towards the target, and the recent information did not materially alter its trajectory,” the minutes said. “Holding the cash rate steady could be an appropriate way to mitigate the risk that the labour market is already close to full employment, which would bring inflation back to target somewhat sooner than envisaged.”