Minutes from the Reserve Bank of Australia's (RBA) last monetary policy meeting revealed that the board considered raising rates by 25 basis points in October.
Ultimately, the members agreed to keep rates steady, as they await data on inflation and jobs. The board stated that further tightening might be necessary if inflation proved more persistent than expected. However, the bank recognized that the full effects of past rate hikes will not be evident for some months and that the labor market likely reached a turning point, with few signs of a wage-price spiral materializing.
"The case to raise the cash rate target further centered on the outlook for inflation and the associated risks ... Members acknowledged that upside risks were a significant concern given how long inflation is likely to remain above target," the statement noted.