RBA Meeting Minutes: Rate hikes aren't ruled out for this year

The Reserve Bank of Australia (RBA) board held a meeting earlier this month, with the minutes now being released this morning.

Aligning with the press release issue in the first week of May, the minutes noted that inflation had eased more slowly than anticipated, creating “considerable uncertainty”.

Additionally, there was mention of an increase in the cash rate....

“A higher cash rate might also be required, even with ongoing weakness in aggregate demand, if other factors slowed the pace of disinflation.”

However, if you are paying close attention to the markets, traders have ramped up their rate cut bets, ascribing a 50 per cent chance of a cut at the RBA’s December meeting (News.com).

With markets being fully priced for a 25 basis point cut by April 2025.