The Reserve Bank of Australia (RBA) released the Minutes of its August monetary policy meeting, where it was said that the members agreed that interest rates may need to go higher as the full impact of the recent rate rises has not been fully felt yet.
The board considered raising rates at its August meeting but decided to hold steady, acknowledging that some further tightening might be required, the statement noted.
"The Board's current assessment is that the risks around the inflation outlook are broadly balanced ... If inflation expectations were to rise, the result would be even higher interest rates, a more substantial slowing in the economy and a larger rise in unemployment to bring inflation back to target," the RBA noted.
