RBA rate rise ‘finely balanced’ with risk of slowdown but more increases still likely, minutes say

The RBA says the full effect of Australia’s rapid rate rises still lies ahead, but further hikes are likely. Photograph: Dean Lewins/AAP

The Reserve Bank’s decision to reduce the size of the interest rate rises this month had been “finely balanced” with the risk of a global and domestic economic slowdown, but further interest rate rises are likely to be required, minutes from the central bank’s October board meeting show.

Earlier this month, the RBA surprised many economists and the markets by hiking its cash rate by 25 basis points – half the expected amount – to 2.6%.