RBA June board meeting minutes released, showing cash rate could hike again

The Reserve Bank has released the minutes from its June board meeting where it considered another rate hike. The discussion shows some storm clouds for homeowners.

Australian homeowners could soon be slugged with another interest rate hike, with the latest minutes from the Reserve Bank of Australia revealing the board is ready to raise rates if “inflation expectations” change.

The discussion, held on June 17 and 18, shows the board, led by RBA Governor Michele Bullock, hold persistent fears about rising prices and the challenge to bring inflation back to its target band of 2-3 per cent.

“Members acknowledged that if inflation expectations were to rise materially from current levels, it could require significantly higher interest rates to bring inflation back to target, with adverse implications for growth in output and employment,” the minutes show.

The RBA held rates steady at 4.35 per cent in June, but reiterated it would be ready to hike them if necessary.

“Raising the cash rate at this meeting could be appropriate if members formed the view that policy settings were not sufficiently restrictive to return inflation to target within a reasonable time frame,” the minutes state.

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