<p align="left">
Minutes
of the monetary policy meetings of the Reserve Bank Board are
published two weeks after each meeting.
</p><p>Headlines via Reuters:</p><ul><li>
Board considered a hike of 25bp or 50bp, a pause was not an option</li><li>Arguments in favour
of both options but the board agreed case for 25bp was stronger</li><li>Households facing
tighter budgets and falling real incomes argued for 25bps</li><li>Monthly meetings
allowed for frequent adjustments, rates had already risen substantially</li><li>Pattern of upward
surprises on inflation, wages argued for 50bp move</li><li>Longer inflation
stayed high, the greater the risk of price-wage spiral</li><li>Board agreed further
rate increases would likely be needed over the months ahead</li><li>Board noted
inflation forecasts based on the technical assumption of 3.75% cash rate</li><li>Board noted cash
rate was still lower than in many other developed nations</li><li>Data suggested more
breadth and persistence in inflation than expected</li><li>Board will do what
is necessary to return inflation to target</li><li>Australia benefiting
from strong terms of trade, large household savings buffers</li><li>Australia to benefit
more from China reopening than a number of other countries</li></ul><p>—</p><p class="text-align-start vertical-align-baseline">The<a href="https://www.forexlive.com/centralbank/australia-rba-raises-the-cash-rate-by-25bp-to-335-as-expected-20230207/" rel="follow" target="_blank" class="article-link"> February 2023 monetary policy decision</a> was a +25bp rate hike. And the statement from Governor Lowe accompanying the decision tilted more hawkish, firming up expectations of further hikes to come.</p><p>Since the decision we've had extensive public remarks from Lowe, links can found in these posts</p><ul class="text-align-start vertical-align-baseline"><li><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-usd-carried-on-higher-20230217/" rel="follow" target="_self" class="article-link vertical-align-baseline">ForexLive Asia-Pacific FX news wrap: USD carried on higher</a></li><li><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-usd-up-regions-equities-lower-20230215/" rel="follow" target="_self" class="article-link">ForexLive Asia-Pacific FX news wrap: USD up, region’s equities lower</a></li></ul><p>The long story short on Lowe's extensive remarks over two separate testimonies to parliament is that there are further rate hikes to come. </p><p>The RBA rate hike cycle so far:</p>
This article was written by Eamonn Sheridan at www.forexlive.com.
