The Reserve Bank of Australia (RBA) judged that the case for holding rates steady is stronger than for hiking them, the bank's June meeting minutes revealed on Tuesday.
The decision to hold the rates steady stemmed from the view that "the economy was still broadly tracking on a path consistent with returning inflation to target in 2026, while preserving as many of the gains in employment as possible." The meeting's members also noted that the unemployment rate could rise quickly once it began its rise, "as had occurred in the past."
The Board highlighted the need to be "vigilant to upside risks to inflation, and that the extent of uncertainty at present meant it was difficult either to rule in or rule out future changes in the cash rate target."
