The Reserve Bank of Australia says its decision to increase the official interest rate in June rather than pause was “finely balanced” and further increases would hinge on how developments at home and abroad affect the inflation outlook.
This assessment, contained in minutes of the RBA’s 6 June board meeting released on Tuesday, may ease some of the expectation that the central bank will hike rates much further in coming months. At the June meeting, the bank lifted the cash rate by 25 basis points to 4.1%, the highest level since 2012.
