The Reserve Bank of Australia (RBA) released the Minutes of its June monetary policy meeting, revealing that the board considered a 25 basis points rate hike or maintaining the current rate and reassessing it at a later meeting.
The decision was described as "finely balanced," but ultimately the board concluded that the case for an immediate rate hike was stronger. The potential rate hike was seen as a measure to enhance confidence in inflation returning to the target level within a "reasonable" timeframe. The minutes also noted that the balance of risks to inflation had shifted to the upside since the May meeting.
"Board reaffirmed willingness to do what was necessary to bring inflation to target," the minutes noted.
