RBA says further rate rises remain possible

The Reserve Bank of Australia’s board unanimously raised the cash rate to 4.60% in September and said further increases remain possible if inflation risks persist, according to minutes released Tuesday. The minutes of the September 28-29 meeting show that members considered holding rates steady only briefly before deciding to lift the rate by 25 basis points. They cited a greater risk that inflation would remain elevated, with domestic demand stronger than previously assessed and global cost pressures increasing. The board said it would continue to do what it considered necessary to meet its mandate for price stability and full employment, including raising the cash rate further if required. The minutes do not commit the bank to another increase; the next decision will depend on economic conditions and the inflation outlook. Policymakers noted that several risks identified earlier had materialised or intensified. They pointed to persistent cost pressures, limited spare capacity in the Australian economy and resilience in activity despite a slowdown. The minutes also discuss how higher global energy costs and developments in the Middle East could feed into inflation.