The Reserve Bank of Australia stated in the minutes that the war in Ukraine was a major new source of uncertainty.
Key minutes
The board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target band.
While inflation had picked up, members agreed it was too early to conclude that it was sustainably within the target band.
Australian economy remained resilient and spending was expected to pick up further after the omicron outbreak.
The board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve.
War in Ukraine and the associated increase in energy prices had created additional uncertainty about the inflation outlook.
There were uncertainties about how persistent pick-up in inflation would be given recent developments in global energy markets and ongoing supply-side problems.
Meanwhile, AUD/USD flirts with 0.7200 on RBA Minutes, China data, Ukraine eyed.
About the RBA minutes
The Reserve Bank of Australia (RBA) publishes the minutes of its monetary policy meeting two weeks after the interest rate decision is announced. It provides a detailed record of the discussions held between the RBA’s board members on monetary policy and economic conditions that influenced their decision on adjusting interest rates and/or bond buys, significantly impacting the AUD. The minutes also reveal considerations on international economic developments and the exchange rate value.
