Minutes of RBA’s November 1 meeting revealed that board members consider both a 25 bps or a 50bps rate hike. There were “arguments in favour of both courses of action”, but the case for 25bps was stronger.
“Acknowledging the uncertainty, members did not rule out returning to larger increases if the situation warranted,” the minutes noted. “Conversely, the Board is prepared to keep rates unchanged for a period while it assesses the state of the economy and the inflation outlook. Interest rates are not on a pre-set path.”
At the meeting, RBA raised the cash rate target by 25bps to 2.85%.
