RBA Meeting Minutes: Debate Over Rate Hike Decision

The Reserve Bank of Australia's February meeting minutes revealed that the board considered the possibility of a 25 basis points rate hike or maintaining the current rate, with the latter being the stronger option due to balanced risks to the outlook. While data provided more confidence in inflation returning to target, the board acknowledged the need for more time to be confident in this. Despite this, the board agreed it was appropriate not to rule out another rate increase, but also noted that hiking rates would not prevent them from cutting if the economy weakens. The minutes also highlighted weaker-than-expected data on the labor market and consumption, as well as the impact of high inflation, higher tax, and interest payments on consumption.